ECONOMIST HOPEFUL ZRA'S SMART INVOICE SYSTEM WILL HELP ADDRESS POOR TAX REMITTANCE

 

Former Economics Association of Zambia President Lubinda Habazoka is hopeful that the Zambia Revenue Authority's smart invoice system will be an effective tool in addressing the pressing issue of lack of value added tax remittance by the majority vat population.

According to ZRA, out of the total 21,179 VAT population, 13,076 of the population representing 60 percent is inactive and only 40 percent of the entire vat population is remitting.

In an interview with Phoenix News, Dr. Habazoka says it is important to ensure that this gap is closed because vat is a major contributor to the country's tax revenue accounting for about 16 percent of income towards the budget.

He has also advised that the implementation of the smart invoice system should be done gradually and should be mixed with traditional methods of taxation.