ARCHIVES
VOL. 7, ISSUE 2 (2025)
Evaluating the effectiveness of tax amnesty for SMEs in Zambia
Authors
Yande Kaziya, Chowa Taonaziso
Abstract
This study evaluates the effectiveness of tax
relief programs for Small and Medium Enterprises (SMEs) in Zambia, with a
particular focus on the Zambian Tax Amnesty Program. The research investigates
the relationship between improved tax compliance, tax amnesty administration,
and the financial stability of SMEs. A quantitative research method was
employed, utilising questionnaires to collect data from 278 respondents. The
data was analysed using SPSS, and correlation analysis was conducted to examine
the impact of the tax amnesty program on SME tax compliance, business growth,
and financial stability. The findings reveal a moderate to strong positive
correlation between improved compliance and tax amnesty systems (r = 0.570),
tax amnesty administration and improved compliance (r = 0.847), and between
improved compliance and SMEs' financial stability (r = 0.905). These
correlations suggest that effective tax amnesty administration significantly
contributes to improved tax compliance, which, in turn, supports the financial
stability of SMEs. Based on these findings, it is recommended that the Zambian
government enhance the clarity and communication of tax amnesty programs to
ensure greater understanding and participation among SMEs. A lack of research
on the effectiveness of tax amnesty programs among SMEs hinders informed fiscal
policymaking. With low SME participation and widespread distrust in the tax
system, stakeholders like ZRA, policymakers, and SMEs risk perpetuating
ineffective strategies, revenue loss, and poor tax compliance. The study
provides valuable insights for policymakers to refine tax relief strategies, fostering
greater SME participation in the formal tax system, supporting business growth,
and contributing to the broader economic development of Zambia.
Download
Pages:39-49
How to cite this article:
Yande Kaziya, Chowa Taonaziso "Evaluating the effectiveness of tax amnesty for SMEs in Zambia". International Journal of Management and Economics, Vol 7, Issue 2, 2025, Pages 39-49
Download Author Certificate
Please enter the email address corresponding to this article submission to download your certificate.