ZAMBIA Association of Manufactures (ZAM) has expressed worry over the challenges which users are facing when trying to comply with the Smart Invoice system being rolled out by the Zambia Revenue Authority (ZRA).
And ZAM says government must lead by example by ensuring that all government departments, state-owned enterprises, and local councils adopt Smart Invoicing.
In a statement, Friday, ZAM president Ashu Sagar said since inception of Smart Invoice, manufacturers had reported various system glitches which disrupt their daily operations, adding delays and increasing administrative burdens.
“The Zambia Association of Manufacturers (the Association) acknowledges the Zambia Revenue Authority’s (ZRA) commitment to modernising tax collection through the implementation of the Smart Invoicing system, which officially began on October 1, 2024. This system aims to enhance transparency and efficiency within the tax administration framework, ultimately increasing revenue collection for the Government of the Republic of Zambia. As a critical source of government revenue, the Association believes that efforts to digitalise and streamline invoicing are essential steps in promoting accountability, efficiency, and national development,” he said.
“However, ZAM has noted several operational challenges that have accompanied the rollout of this system. Since its inception, manufacturers have reported various system glitches that disrupt their daily operations, adding delays and increasing administrative burdens”.
He warned that if these issues were not properly addressed, there was a risk of undermining the system’s intended benefits and affecting compliance levels.
“These issues, if not promptly addressed, risk undermining the system’s intended benefits, leading to frustration among users and affecting compliance levels. The Association calls on the Government to lead by example in this digital transition by ensuring that all revenue collection points, including government departments, state-owned enterprises, and local councils, adopt Smart Invoicing. This would not only promote a seamless and standardized process but also enhance accountability and transparency across all levels of governance. Full integration of Smart Invoicing within these entities will set a strong precedent, encouraging broader adoption among businesses of all sizes,” said Sagar.
“To achieve its intended goals, ZRA must address the pressing need to formalise the informal economy. A significant proportion of Zambia’s economic activities occur within the informal sector, which remains largely untaxed and unregulated. Without a comprehensive approach that includes both formal and informal businesses, the scope and effectiveness of smart invoicing will remain limited. Expanding the reach of this system into the informal sector would broaden the tax base and create a fairer competitive environment for all businesses. ZAM remains committed to collaborating with ZRA and other stakeholders to resolve these challenges. We urge continued engagement with the manufacturing community to fine-tune the smart invoicing system, ensuring it fulfills its potential to support economic growth while fostering a culture of compliance and transparency”.
