TaxOnPhone enables access to tax IDs and tax services for Zambians across the country using any mobile phone without having to travel long distances to a ZRA office or an internet café. The system was launched in May 2019, and already in November 2019, the platform recorded more than 100,480 applications to register a tax number. Through the taxation of SMEs enabled by TaxOnPhone, ZRA collects USD 20,000 in taxes per month.

The venture is based on the business model that ZRA pays for the implementation and maintenance of the system.

TaxOnPhone is an electronic tax system that simplifies tax declaration and payment for small and medium-sized businesses (SMEs) in Zambia. The system connects the Zambia Revenue Authority's (ZRA) online tax platform to the country's mobile networks. Using any type of phone and without an Internet connection, TaxOnPhone enables access to ZRA's services through interactive text menus. Tax collection is simplified and extended to the entire country.

Now that any taxpayer in Zambia can register for a tax ID (which is required to open a bank account) using any cell phone without internet access, there has been a significant increase in the number of bank account openings and thus financial inclusion in areas that were not traditionally covered by government tax services.

Developed in lot 1

Challenge: How might we improve Zambia's taxation of small and medium-sized enterprises?