An Investigation of Strategies to Improve Tax Compliance Among SMES: A Case Study of Zambia Revenue Authority

Abstract

This study investigates strategies to enhance tax compliance among Small and Medium Enterprises (SMEs) in Livingstone, Zambia, using the Zambia Revenue Authority (ZRA) as a case study. The research employed a mixed-method approach, combining surveys and interviews with SME owners and ZRA officials. Key findings indicate a significant compliance gap, with 40.4% of SMEs not registered for tax, largely attributed to a lack of awareness about tax obligations. Despite this, most SMEs recognize the benefits of taxation and express interest in improving their understanding through training programs. The study concludes with recommendations for ZRA to implement targeted educational campaigns and improve electronic tax filing systems to address usability issues.