The Civil Society for Poverty Reduction (CSPR) has welcomed the Zambia Revenue Authority’s (ZRA) decision to suspend the Withholding Value Added Tax (WVAT) mechanism effective August 1, 2025, but is calling for its complete decommissioning due to persistent inefficiencies.
CSPR Executive Director, Isabel Mukelabai, said the WVAT system failed to meet its objectives and caused undue hardship for traders, citing delays by appointed agents in remitting VAT, penalties on traders, and administrative challenges that undermined compliance.
“The mechanism created more problems than solutions and traders were forced to chase collecting agents, and some even bore additional tax burdens due to remittance delays,” said Ms. Mukelabai in a statement issued to RCV News in Lusaka today.
She noted that while the rollout of the Smart Invoicing System is a positive step toward tax modernization, gaps remain.
Ms. Mukelabai said these include limited internet access, low digital literacy among traders, and lack of shared data platforms across regulatory agencies, issues that may still undermine VAT compliance.
She cautioned that without strong enforcement, infrastructure support, and stakeholder capacity-building, the system risks being ineffective, especially in informal and rural markets.
Angel Kasabo
