Langham Mwanza - Academia.edu (original) (raw)
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Papers by Langham Mwanza
Thesis Chapters by Langham Mwanza
This research has discussed the informal sector in Zambia and looked at the challenges that Zambi... more This research has discussed the informal sector in Zambia and looked at the challenges that Zambia and most developing countries encounter in attempting to collect taxes from the informal sector. Because the informal sector in Zambia makes up a large and growing component of the economy, collecting adequate revenues to finance national expenditures requires the state and tax authorities to come up with effective ways of collect tax revenues from individuals and businesses earning their incomes in the informal sector. The Zambian government has been collecting presumptive taxes from some informal operators for more than a decade now but these collections have been so insignificant in proportionate with the size of the sector (89% of the economy) in Zambia. Therefore, there is need to reform the presumptive taxation regime with its existing instruments and strategies of taxing the informal sector by going beyond mere evaluation. This requires a look at issues such as the coverage of informal sector operators, the tax administration and its limitations, the existing framework conditions and the ability of the state to encourage compliance. Most crucially, successful reforms processes should require political backing from political leaders, the tax authority and the taxpayers. Therefore, the study has called for greater focus to enhancing political incentives for reform, through administrative and institutional reform. Finally, this paper has argued and suggested that the Zambian government should focus on widening the toolbox of instruments for taxing the informal sector as none of the available instruments may suffice. In so doing, this would help to increase the coverage and hence increased tax revenues.
Conference Presentations by Langham Mwanza
This research has discussed the informal sector in Zambia and looked at the challenges that Zambi... more This research has discussed the informal sector in Zambia and looked at the challenges that Zambia and most developing countries encounter in attempting to collect taxes from the informal sector. Because the informal sector in Zambia makes up a large and growing component of the economy, collecting adequate revenues to finance national expenditures requires the state and tax authorities to come up with effective ways of collect tax revenues from individuals and businesses earning their incomes in the informal sector. The Zambian government has been collecting presumptive taxes from some informal operators for more than a decade now but these collections have been so insignificant in proportionate with the size of the sector (89% of the economy) in Zambia. Therefore, there is need to reform the presumptive taxation regime with its existing instruments and strategies of taxing the informal sector by going beyond mere evaluation. This requires a look at issues such as the coverage of informal sector operators, the tax administration and its limitations, the existing framework conditions and the ability of the state to encourage compliance. Most crucially, successful reforms processes should require political backing from political leaders, the tax authority and the taxpayers. Therefore, the study has called for greater focus to enhancing political incentives for reform, through administrative and institutional reform. Finally, this paper has argued and suggested that the Zambian government should focus on widening the toolbox of instruments for taxing the informal sector as none of the available instruments may suffice. In so doing, this would help to increase the coverage and hence increased tax revenues.