Assessing the impact of value added tax (VAT) on government revenue in Zambia.

dc.contributor.authorKufanga, Likando
dc.date.accessioned2025-01-15T11:48:25Z
dc.date.available2025-01-15T11:48:25Z
dc.date.issued2024
dc.descriptionThesis of Master of Business Administration in Finance.
dc.description.abstractThis research aimed to assess the impact of Value Added Tax (VAT) on government revenue collection. The study employed a mixed methods research design, which combines both qualitative and quantitative methodologies. The study focused on a population of 500 management-level employees at the Zambia Revenue Authority and Ministry of Finance. Seeing that the study was heavy on qualitative approach and had specific type of cadre to provide the necessary information, a sample of 30 respondents was utilized which was purposively sampled. The secondary sources on the other hand mainly involved published documentations such as reports obtained from Zambia Revenue Authority official website and journals that provided the conceptual framework and a definite meaning to the topic. Regarding the effect of VAT on Government revenue the study revealed that an increase in VAT rate may lead to higher VAT revenue, assuming a stable level of compliance. With regard to effect of VAT on consumer behaviour, it was established that when VAT rates are elevated in Zambia, the prices of a wide array of goods and services subject to VAT increase accordingly, hence consequently, higher VAT rates can drive consumers to opt for saving or investing their money rather than immediate spending. This may simultaneously lead to a reduction in consumer spending, potentially impeding economic growth. As regards to ascertaining measures to address challenges related to VAT collection, findings indicated that effectiveness of VAT is contingent upon addressing the challenges inherent in VAT collection, optimizing VAT rate policies, and adapting the system to the country's unique economic context. The study offers several recommendations, including: improving tax administration through the Zambia Revenue Authority (ZRA); combating tax fraud and evasion; simplifying VAT regulations; enhancing taxpayer education and awareness; carefully considering exemptions and thresholds; and implementing monitoring and evaluation mechanisms for VAT revenue. Further study is recommended to explore the informal economy's role in VAT collection in Zambia and its implications.
dc.identifier.urihttps://dspace.unza.zm/handle/123456789/9079
dc.language.isoen
dc.publisherThe University of Zambia
dc.titleAssessing the impact of value added tax (VAT) on government revenue in Zambia.
dc.typeThesis
Files
Original bundle
Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
Main document
Size:
720.36 KB
Format:
Adobe Portable Document Format
Description:
License bundle
Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description: