Support to the Government of Zambia
Background & Context
The Public Financial Resource Centre (PFRC) provided technical assistance to the government of Zambia, designed to lay the groundwork for sustainable revenue improvements with the objective of improving domestic resource mobilisation and strengthening the business environment in Zambia
Key Counterparts
- Ministry of Finance and National Planning
- Zambia Revenue Authority (ZRA)
- Foreign, Commonwealth & Development Office (FCDO)
Objective
This intervention supported the Ministry of Finance and National Planning (MOF) and the Zambia Revenue Authority (ZRA) to identify and address key constraints to domestic revenue mobilization through benchmarking and targeted reforms in VAT refunds, customs administration, mapping illegal mining activities and tax arrears management.
Approach & Scope of Support
PFRC delivered the intervention through in country as well as remote technical expert support to the Ministry of Finance and National Planning and ZRA.
The scope of support included:
- High level Tax Benchmarking
- VAT refunds Benchmarking
- Customs Benchmarking
- Mapping Illegal Mining Sites
- Tax Arrears Management Benchmarking
- Tax Administration Bill Reform
- Institutional Strengthening and Fiscal Analytics
Outcomes
A central outcome of the intervention is the demonstration that administrative reforms can unlock significant fiscal space while strengthening the investment climate, particularly through resolving VAT refund arrears and tackling illicit trade and illegal mining. More specific outcomes included:
- Restoring investor confidence through VAT refund reform.
- Highlighted delays in Border movement of goods in time release study.
- Combating illegal mining and smuggling through analytics and targeted enforcement.
- Strengthening tax arrears management and revenue recovery.
- Institutional strengthening and performance monitoring.