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Assessing the impact of an intervention to withhold value-added tax in Zambia

Author

Listed:
  • Kwabena Adu-Ababio
  • Aliisa Koivisto
  • Andreya Kumwenda
  • Gregory Chileshe
  • John Mulenga
  • Mutemwa Mebelo
  • Ian Mufana
  • Yenda Shamabobo

Abstract

Improving tax collection is essential if developing economies are to avoid over-reliance on external donor funds and loans. Revenue authorities in the Global South have recently adopted new policy tools to improve domestic revenue mobilization through taxes. One such new policy is a withholding system for value-added tax (VAT). In this study, we investigate the impact of adopting a system for withholding value-added tax on VAT collection in Zambia. While similar systems are in place in many countries, empirical research into their impact is still limited and inconclusive.

Suggested Citation

  • Kwabena Adu-Ababio & Aliisa Koivisto & Andreya Kumwenda & Gregory Chileshe & John Mulenga & Mutemwa Mebelo & Ian Mufana & Yenda Shamabobo, 2023. "Assessing the impact of an intervention to withhold value-added tax in Zambia," WIDER Working Paper Series wp-2023-21, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2023-21
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Value-added tax; Tax compliance; Tax administration; Africa;
    All these keywords.

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