K4 Billion in Unpaid Taxes Expose Gaps in ZRA Enforcement

By Gibson Zulu

Over K4 billion in declared taxes remain unpaid, with liabilities from filed tax returns still unsettled — exposing serious lapses in revenue enforcement, possible corruption, and systemic weaknesses within Zambia’s tax system.

According to the 2025 Auditor General’s Report, tax returns amounting to K4.39 billion were filed with the Zambia Revenue Authority (ZRA) but, as of 31 August 2025, the corresponding liabilities had not been cleared.

The uncollected taxes include rental income tax amounting to about K6.4 million, withholding VAT of roughly K628 million, reverse VAT of K452 million, and value-added tax (VAT) totalling around K3.17 billion.

In addition, excise duty stood at about K131 million, insurance premium tax at K8.8 million, and tourism levy at approximately K1.5 million, bringing the total uncollected amount to over K4.39 billion.

TABLE: FILED RETURNS WITHOUT PAYMENTS (AS OF 31 AUGUST 2025)

The Zambia Revenue Authority (ZRA) has not yet responded to MakanDay’s request for comment. Efforts to obtain a statement from the Authority’s Public Relations Officer, Oliver N’Zala, have so far been unsuccessful.

In an interview with MakanDay, policy analyst Zondwa Duma warned that the failure to collect over K4 billion in taxes has serious fiscal implications for how the government raises and manages public funds.

He expressed hope that such loopholes in the tax system will be addressed to prevent future losses.

Gibson is an intern at MakanDay under the Free Press Initiative’s Journalism Graduate Internship Programme, which aims to promote excellence in journalism.