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The Role of Reliable Data Sources in Facilitating Tax Policy Formulation in Zambia

Year: 2025
Type: article
Study design: Observational Study
Abstract: The aim of this study was to analyse the reliability of data sources in facilitating tax policy formulation in Zambia. The study was guided by specific objectives which were to identify the types and origins of data utilized and their reliability. Despite numerous reforms and revenue mobilization efforts, Zambia continues to face challenges such as tax evasion, a narrow tax base, and ineffective targeting of tax incentives. A mixed-methods research approach (qualitative and quantitative) was adopted, with 50 key research participants from the Zambia Revenue Authority (ZRA), Ministry of Finance and tax experts selected through purposive sampling. The research findings have revealed that types of data such as administrative data from ZRA is mostly used in tax policy formulation. About 56% of data used comes from ZRA. Statistically (χ² = 15.42, p = 0.002) between data sources and effectiveness of tax policy formulation. The research findings have revealed that there are significant challenges in the reliability of data sources. The 52% showed that the data sources used are not reliable. Furthermore, Chi-square tests revealed a statistically significant association between the perceived reliability of data and its effectiveness in policy formulation (χ² = 18.45, p = 0.001). Furthermore, regression analysis confirmed a strong positive correlation between the use of integrated, real-time data systems and the perceived efficiency of the tax policy process (p = 0.0003, F-value = 22.34). Recommendations are that the government needs to enhance data infrastructure, inter-agency cooperation, technical capacity and the integration of digital tax data systems.
DOI: 10.5281/zenodo.17760592
Authors: Solis Ngoi, Peter Silwimba
Language: English
Open Access status: green
OpenAlex ID: W7107959272
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