The Industrial Development Corporation (IDC) has praised the introduction of Smart Invoicing, stating that it has the potential to enhance Value Added Tax (VAT) revenue collection by improving compliance and reducing tax evasion.
IDC Acting CEO, Mrs. Leya Mtonga-Ngoma, made these remarks earlier today while appearing before the Parliamentary Committee on Planning and Budgeting, chaired by Hon. Fred Chaatila, Member of Parliament for Moomba Constituency. She was presenting an analysis on “Domestic Resource Mobilisation: A Case of Value Added Tax.”
Mrs. Ngoma who is IDC’s Chief Legal Officer, described the Smart Invoicing System as a forward-thinking initiative by the Zambia Revenue Authority (ZRA) aimed at strengthening revenue integrity and improving service delivery within the country’s tax administration.
“The introduction of the electronic smart invoicing system marks a significant milestone in modernizing tax administration in Zambia…This initiative not only reduces the compliance burden for taxpayers but also fosters transparency and efficiency in the taxation ecosystem,” she said.
However, she emphasized that the system’s success would depend on ZRA’s implementation, the willingness of businesses to adopt the technology, and continuous monitoring and support from the tax authority.
IDC Chief Financial Officer, Mr. Raphael Chipoma, acknowledged that while adoption challenges exist, Smart Invoicing is the future due to its significant benefits, including automation, improved compliance, reduced human error, enhanced data security, and fraud prevention.
“We urge Zambian businesses to embrace the system and call on ZRA to continue public education efforts. Ensuring a smooth rollout and addressing any implementation challenges will be key to its success,” Mr. Chipoma added.
Ends.