ZRA Demands K14.5 Billion in Tax From FIC Cases
The Zambia Revenue Authority (ZRA) has reinforced its commitment to sealing tax revenue leakages with a K14.5 billion tax demand based on cases of suspected illicit financial flows reported by the Financial Intelligence Centre (FIC).
As of September 2024, ZRA received and investigated 510 cases submitted by the FIC, resulting in substantial tax assessments on various individuals and corporations.
In a significant increase from 2023, ZRA successfully concluded 157 cases between January and September 2024 — an impressive 823.5% rise from the 17 cases assessed during the same period last year.
This efficiency boost is credited to ZRA’s newly established Financial Crimes Unit within its Investigations Department, part of a New Operating Model launched in December 2023. The model has seen a rise in departmental staffing from 34 to 52 positions, enhancing ZRA’s ability to address financial crimes with a focused approach.
ZRA also applauded recent tax policy measures announced in the 2025 budget, which aim to tighten tax compliance further. Key among these reforms is the introduction of an Advance Income Tax (AIT) at a 15% rate on remittances and exports exceeding USD $2,000 for transactions without a valid Tax Clearance Certificate.
Another major policy shift is the planned expansion of the Export Proceeds Tracking Framework, which will now also include monitoring services and imports.
These new structural reforms are anticipated to minimize loopholes for tax evasion, thus enhancing Zambia’s revenue generation capabilities. Oliver Nzala, ZRA’s Corporate Communications Manager, emphasized the critical role of collaborative efforts among the ZRA, Law Enforcement Agencies (LEAs), and other partners in combating tax evasion and associated financial crimes that threaten Zambia’s economic stability.
The ZRA also reminded the public that tax evasion is a predicate offence to money laundering, carrying severe penalties for those involved in such practices. This message serves as both a warning and an encouragement to ensure compliance with Zambia’s tax laws, fostering a more sustainable and equitable economic environment.
This is in a statement issued by Oliver Nzala, Manager – ZRA Corporate Communications.
