TaxOnPhone is an electronic tax system that simplifies tax declaration and payment for small and medium-sized businesses (SMEs) in Zambia. The system links the online tax platform of the Zambian Revenue Authority (ZRA) to mobile networks in the country. With any kind of phone and without the need for internet connection, TaxOnPhone allows access to ZRA services via interactive text menus. Tax collection is simplified and extended throughout the country.
The venture builds upon the business model that the ZRA pays for the implementation and maintenance of the system.
After the system went live in May 2019, around 100 taxpayers registered daily. As of December 2019, more than 10.000 taxpayers are actively using the system. This allows the ZRA to collect 20.000 USD via TaxOnPhone per month and led to an increase in bank account openings and financial inclusion in Zambia. Ibes AG invested €200.000 and plans to extend the system as soon as necessary resources are available.
Developed in lot 1 // Challenge: How might we improve Zambia's taxation of small and medium-sized enterprises?
Further information: ibes Good Governance Solutions