IDEAS home Printed from https://ideas.repec.org/a/cwk/ajocsk/2024-07.html

A study of the effect of Mobile Money Services on Tax Compliance in zambia: A case of MFEZ and CBD Lusaka

Author

Listed:
  • Ms. Exildah Namangulu Nsangu

    (Graduate School of Business, University of Zambia)

  • Dr. Lubinda Haabazoka

    (Graduate School of Business, University of Zambia)

Abstract

The aim of this study was to assess the effect of mobile money services on tax compliance in Zambia, in the case of the Multi-Facility Economic Zone (MFEZ) and Central Business District (CBD) of Lusaka. The study objectives were first to establish the extent to which mobile money is used to pay tax to the Zambia Revenue Authority (ZRA) in Zambia. Secondly, it aimed to find out the challenges of using mobile money for tax compliance in Zambia and, lastly, explore potential measures and strategies that could be implemented to harness the potential of mobile money in augmenting tax compliance. Drawing upon both quantitative and qualitative research methodologies, this study employed surveys, interviews, and data analysis techniques to elucidate the intricate dynamics at play. Through rigorous data collection and analysis, the research aimed to provide insights into the utilization patterns, benefits, and challenges associated with mobile money in tax compliance. The findings of this study were expected to contribute significantly to the existing body of knowledge concerning mobile money adoption and its implications for tax compliance in developing economies. By shedding light on the specific nuances of the Zambian context, this research endeavored to offer actionable recommendations aimed at fostering an environment conducive to leveraging mobile money for enhanced tax compliance. From a broader perspective, this thesis aspires to not only deepen academic understanding but also offer practical implications for policymakers, tax authorities, financial institutions, and mobile money service providers in Zambia and beyond. The study established that, to a good extent, mobile money is used by taxpayers to pay presumption tax. It was also established in the study that mobile money can reduce the prevalence of cash transactions and can provide a digital trail of transactions, making it easier for governments to track and collect taxes. Using mobile money can also improve tax compliance.

Suggested Citation

  • Ms. Exildah Namangulu Nsangu & Dr. Lubinda Haabazoka, 2024. "A study of the effect of Mobile Money Services on Tax Compliance in zambia: A case of MFEZ and CBD Lusaka," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 4(2).
    • Handle: RePEc:cwk:ajocsk:2024-07
    DOI: 10.59413/ajocs/v4.i2.1
    as

    Download full text from publisher

    File URL: https://ijcsacademia.com/index.php/journal/article/view/52
    Download Restriction: no
    File URL: https://libkey.io/10.59413/ajocs/v4.i2.1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Newman Wadesango & Mwandambira N & Mhaka Charity & Wadesango Ongayi, 2018. "Literature Review on the Impact of Tax Knowledge on Tax Compliance among Small Medium Enterprises in a Developing Country," International Journal of Entrepreneurship, Allied Business Academies, vol. 22(4).
    2. Mr. Bernardin Akitoby & Mr. Jiro Honda & Hiroaki Miyamoto & Keyra Primus & Mouhamadou Sy, 2019. "Case Studies in Tax Revenue Mobilization in Low-Income Countries," IMF Working Papers 2019/104, International Monetary Fund.
    3. Torgler, Benno, 2003. "To evade taxes or not to evade: that is the question," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(3), pages 283-302, July.
    4. Dina Pomeranz, 2015. "No Taxation without Information: Deterrence and Self-Enforcement in the Value Added Tax," American Economic Review, American Economic Association, vol. 105(8), pages 2539-2569, August.
    5. Cummings, Ronald G. & Martinez-Vazquez, Jorge & McKee, Michael & Torgler, Benno, 2009. "Tax morale affects tax compliance: Evidence from surveys and an artefactual field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 70(3), pages 447-457, June.
    6. Timothy Besley & Torsten Persson, 2014. "Why Do Developing Countries Tax So Little?," Journal of Economic Perspectives, American Economic Association, vol. 28(4), pages 99-120, Fall.
    7. Gordon, Roger & Li, Wei, 2009. "Tax structures in developing countries: Many puzzles and a possible explanation," Journal of Public Economics, Elsevier, vol. 93(7-8), pages 855-866, August.
    8. Joel Slemrod, 2007. "Cheating Ourselves: The Economics of Tax Evasion," Journal of Economic Perspectives, American Economic Association, vol. 21(1), pages 25-48, Winter.
    9. repec:idq:ictduk:18006 is not listed on IDEAS
    10. repec:idq:ictduk:17906 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anjela Kavetsa, 2025. "Corporate Tax Compliance on the Financial Performance of Manufacturing Companies in Kenya," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 6(2).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joana Naritomi, 2019. "Consumers as Tax Auditors," American Economic Review, American Economic Association, vol. 109(9), pages 3031-3072, September.
    2. repec:idq:ictduk:13726 is not listed on IDEAS
    3. Chen, Shawn Xiaoguang, 2017. "The effect of a fiscal squeeze on tax enforcement: Evidence from a natural experiment in China," Journal of Public Economics, Elsevier, vol. 147(C), pages 62-76.
    4. Fadi Alasfour, 2019. "Costs of Distrust: The Virtuous Cycle of Tax Compliance in Jordan," Journal of Business Ethics, Springer, vol. 155(1), pages 243-258, March.
    5. Szabó, Andrea & Ujhelyi, Gergely, 2015. "Reducing nonpayment for public utilities: Experimental evidence from South Africa," Journal of Development Economics, Elsevier, vol. 117(C), pages 20-31.
    6. Joel Slemrod & Obeid Ur Rehman & Mazhar Waseem, 2019. "Pecuniary and Non-Pecuniary Motivations for Tax Compliance: Evidence from Pakistan," NBER Working Papers 25623, National Bureau of Economic Research, Inc.
    7. Junxue Jia & Siying Ding & Yongzheng Liu, 2018. "Decentralization, Incentives, and Tax Enforcement," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1819, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    8. Leopoldo Fergusson & Carlos A. Molina & James A. Robinson, 2022. "The Weak State Trap," Economica, London School of Economics and Political Science, vol. 89(354), pages 293-331, April.
    9. Kodjo Adandohoin & Jean-Francois Brun, 2020. "Are incomes and property taxes effective instruments for tax transition?," Working Papers hal-03053683, HAL.
    10. Christopher Hoy & Luke McKenzie & Mathias Sinning, 2024. "Improving Tax Compliance without Increasing Revenue: Evidence from Population-Wide Randomized Controlled Trials in Papua New Guinea," Economic Development and Cultural Change, University of Chicago Press, vol. 72(2), pages 691-723.
    11. Guo, Jang-Ting & Hung, Fu-Sheng, 2020. "Tax evasion and financial development under asymmetric information in credit markets," Journal of Development Economics, Elsevier, vol. 145(C).
    12. Clifford, Sarah & Mavrokonstantis, Panos, 2021. "Tax enforcement using a hybrid between self- and third-party reporting," Journal of Public Economics, Elsevier, vol. 203(C).
    13. Salim Nuhu Ahmed & John M. Musah, 2018. "On asymmetric information and tax morale in developing countries," WIDER Working Paper Series wp-2018-12, World Institute for Development Economic Research (UNU-WIDER).
    14. Antinyan, Armenak & Asatryan, Zareh, 2019. "Nudging for tax compliance: A meta-analysis," ZEW Discussion Papers 19-055, ZEW - Leibniz Centre for European Economic Research.
    15. Kleven, Henrik & Best, Michael & Spinnewijn, Johannes & Waseem, Mazhar & Brockmeyer, Anne, 2013. "Production vs Revenue Efficiency With Limited Tax Capacity: Theory and Evidence From Pakistan," CEPR Discussion Papers 9717, C.E.P.R. Discussion Papers.
    16. Rema Hanna & Benjamin A. Olken, 2019. "Tax Administration vs. Tax Rates: Evidence from Corporate Taxation in Indonesia," CID Working Papers 361, Center for International Development at Harvard University.
    17. Qian, Nancy & Liu, Yu & Wen, Jaya & Fan, Haichao, 2018. "The Dynamic Effects of Computerized VAT Invoices on Chinese Manufacturing Firms," CEPR Discussion Papers 12786, C.E.P.R. Discussion Papers.
    18. Leopoldo Fergusson & Carlos Molina & Juan Felipe RiaÔøΩo, 2017. "I evade taxes, and so what? A new database and evidence from Colombia," Documentos CEDE 15444, Universidad de los Andes, Facultad de Economía, CEDE.
    19. Kodjo Adandohoin & Jean-Francois Brun, 2021. "The Role of Income and Property Taxes in Tax Transition and the Mediating Effect of Financial Development," Post-Print hal-03470540, HAL.
    20. Joel Slemrod & Caroline Weber, 2012. "Evidence of the invisible: toward a credibility revolution in the empirical analysis of tax evasion and the informal economy," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(1), pages 25-53, February.
    21. Haichao Fan & Yu Liu & Nancy Qian & Jaya Wen, 2018. "Computerizing VAT Invoices in China," NBER Working Papers 24414, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cwk:ajocsk:2024-07. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Charles G. Kamau (email available below). General contact details of provider: https://ijcsacademia.com/index.php/journal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.