• The project will help Zambia improve domestic revenue mobilization and expand the fiscal space.
• It will further support four objectives to help Zambia strengthen tax culture.
• The Project will foster coalitions that can quickly mobilize support for domestic resource mobilization and broader fiscal policy reforms.
United States Agency for International Development (USAID) has reiterated that the expected outcome of its US$12.89 million Revenue for Growth Project (R4G) is increased Government tax revenue as a percentage of the Gross Domestic Product (GDP), and improved tax payment compliance among others.
Addressing Journalists in Lusaka during a media training workshop on tax reporting, USAID Chief of Party Edward Koos said the project will help Zambia improve domestic revenue mobilization and expand the fiscal space for investments in public service delivery and poverty reduction.
Mr. Koos stated that the project will further support four objectives to help Zambia strengthen tax culture, increase voluntary compliance and sustainably increase domestic revenue in a manner that promotes balanced private sector-led economic growth.
“Activities under the Revenue for Growth Project will support the following four objectives; improve tax and non-tax revenue administration and compliance, strengthen tax policy, enhance public private dialogue, and enhance capacity to address other fiscal policy and management priorities.”
“As significant changes in tax policy are politically challenging, the Project will support the private sector, civil society stakeholders and the Zambian government in activities to promote improved tax analysis, dialogue, and advocacy,” Mr. Koos explained.
He added that the R4G Project will further foster coalitions that can quickly mobilize support for both domestic resource mobilization as well as broader fiscal policy reforms needed to respond to the current fiscal situation and economic shocks.
“The expected results of the Project are increase in tax revenue as a percentage of GDP, improve tax payment compliance, increase efficiency of VAT collections and the refund processing system, and improve monitoring and reporting of the Zambia Revenue Authority (ZRA),” he added.
The Revenue for Growth Project which commenced on 14th June 2021, will run up to 13th June 2026 across Zambia with total funding of US$12.89 million.
The Project will engage government and non-government stakeholders to build capacity in tax policy analysis, improve tax compliance and administration, as well as strengthen the tax culture in a manner that facilitates private sector growth and accountability relationships between taxpayers and government.