USAID Revenue for Growth helps Zambia improve tax administration and tax policy through improved voluntary compliance, to sustainably increase domestic revenues in a manner that promotes balanced private sector-led economic growth and a strengthened tax culture.

Zambia's tax collection of 17.8 percent of GDP (2022) is below the target set in the National Development Plan, which is 20 percent of GDP, and is inadequate to meet its development needs. The Government of the Republic of Zambia will need to significantly increase efficiency and compliance in tax collections to generate revenue to address this. The USAID Revenue for Growth project is helping Zambia improve domestic revenue mobilization and expand the fiscal space for investments in public service delivery and poverty reduction to meet high debt repayments and invest in its people. Private sector and citizen engagement in formulating more equitable and broad-based tax policy initiatives is essential. The project supports the private sector and civil society stakeholders with skills and tools for improved tax analysis, dialogue, and advocacy and works with the Zambian government to enhance tax policy and tax administration.

  • Life of Project: June 2021 - June 2026
  • Geographic Focus: National
  • Partner: Nathan Associates, Inc.
  • Acting Chief of Party: Alex Kitain - alex.kitain@cadmusgroup.com
  • Total USAID Funding: $12.89 million
  • USAID Contact: Salim Kaunda - skaunda@usaid.gov

GOALS 

goal one 

Improve Tax and Non-Tax Revenue Administration and Compliance. 

goal two 

Strengthen Tax Policy. 

goal three 

Enhance Public-Private Dialogue. 

goal four

Enhanced capacity to address other fiscal policy and management priorities.


KEY RESULTS FOR 2023

  • Supported the Zambia Revenue Authority to collect close to $14 million due to the project’s debt management and audit process optimization initiatives 
  • Trained staff at the Ministry of Finance and National Planning to conduct Cost-Benefit Analysis of tax incentives and a Tax Expenditure Reporting Manual along with a Cost-Benefit Analysis Model were developed for the Ministry of Finance and National Planning
  • Increased collections of arrears from defaulting employers and seven percent increase in beneficiary registration in the National Health Insurance Management Authority
  • Facilitated private sector, civil society, media and academia actors to engage with Zambian government stakeholders on tax policy and tax administration issues at the 2023 National Budget symposium and the forum on the 2023 Mid-year Economic Performance Review and 2024-2026 Medium-Term Budget Plan
  • Supported the estimation and determination of tax gaps of Zambia’s Excise Tax and Corporate Income Tax regimes and co-developed strategies with the Zambia Revenue Authority to identify possible means to close gaps for both taxes
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