Zambia extends tax amnesty to boost compliance, revenue as ZRA pays K21.2bn in VAT refunds

Instead, he said, it provided eligible taxpayers with a structured opportunity to correct past omissions and regularise their tax affairs.

Under the programme, qualifying taxpayers will receive relief from penalties and interest on voluntary disclosures. Penalties and interest on outstanding tax arrears may also be waived, subject to prescribed conditions.

The Zambia Revenue Authority (ZRA) said the country’s overall tax compliance rate stood at 58% in 2025, with small and medium-sized enterprises recording some of the lowest compliance levels.

The authority said the programme was intended to bring more taxpayers into the formal compliance system and promote a more transparent tax environment.

Meanwhile, ZRA Commissioner-General, Dingani Banda, said the authority had approved value-added tax refunds amounting to 13.7 billion kwacha ($) as of Aug. 31, 2026.

Banda said ZRA had paid 21.2 billion Kwacha in VAT refunds during 2026 to date, with payments largely directed towards clearing the historical backlog under the first-in, first-out system.

He said the private sector accounted for a significant share of outstanding VAT refund obligations.

Taxpayers dissatisfied with the outcome of their applications under the programme will have the right to appeal through the Tax Appeals Office using designated channels.

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