Some of the ten Zambian provinces lack tax offices for citizens to declare and pay their taxes. They often need to travel long distances to reach the nearest office, resulting in common delays in tax payments from one to two years. This also concerns tax payments from small and medium-sized enterprises (SMEs).
is a mobile and electronic tax system that simplifies tax declaration and payment for SMEs. The system links the online tax platform of the Zambian Revenue Authority (ZRA) to the existing mobile networks in the country. With any kind of mobile phone and via interactive text menus (using USSD technology which removes the need for any internet connection), allows fast and cheap access to ZRA services, such as checking the tax status, register for a Tax ID, declaring and paying taxes, proving tax compliance and more. For the ZRA, tax collection is simplified and their coverage is extended throughout the country.
The core system was installed in September 2018; the first module for tax returns went live in January 2019. The module for receiving Tax IDs went live in May. It is mandatory for Zambians to have a Tax ID in order to own a bank account. Thus, the simplified process of receiving a Tax ID via enables more Zambians to own a bank account. This also enables improved tax collection to the ZRA.
AG is currently planning two extensions to the system: The via payable taxes will be extended to include sales tax and payment via a mobile wallet will be added to the payment options.
The business model:
AG installs and implements the system for the Zambian Revenue Authority (ZRA).
In May 2019, about 100 taxpayers registered daily
Tax revenues of a total of € 20,000 are collected via per month (as at August 2019)
AG 200.000 €
Increasing tax revenues paid by SMEs in Zambia
Simplifying and expanding tax collection for the ZRA
Enabling citizens to pay taxes more efficiently and cheaper by not needing to travel to a tax office
Simplifying tax payment due to the reduced tax forms for use on mobile phones
AG, Zambian Revenue Authority (ZRA)