An Assessment of The Effect of Electronic Tax Management Systems on Tax Collection in Zambia: The Case of The Zambia Revenue Authority (ZRA)

Abstract

The policy discourse on electronic tax collection in developing countries has gained momentum as governments seek efficient systems for assessment and collection through internet-based solutions. In Zambia, the Zambia Revenue Authority (ZRA) introduced the Electronic Tax Management System (ETMS), rooted in reforms dating back to 1994, which has since evolved into a widely utilized platform with high taxpayer engagement. This study focused on evaluating the relationship between ETMS and tax collection efficiency, particularly in Lusaka, using a quantitative descriptive design and analyzing data from 100 randomly selected ZRA employees. Findings revealed that ETMS positively impacts compliance, transparency, and efficiency, leading to increased tax revenue. Integration of ETMS into ZRA processes provided benefits such as risk assessment, real-time monitoring, and improved data accuracy. However, challenges remain, including informal sector dominance, a narrow tax base, complex policies, outdated technology, and enforcement difficulties. The study concluded that addressing these issues is essential for sustainable revenue collection and recommended continuous staff training, interdepartmental collaboration, and comprehensive tax reform strategies.