A Study to Establish Factors Inhibiting Voluntary Tax Compliance among the Small and Medium Enterprises (Smes) in the Zambian Economy, Survey of (Smes) of Kamwala Township in Lusaka City

Christopher Chaponda; Dr Bwalya Chilolo

doi:10.36948/ijfmr.2025.v07i04.43908

A Study to Establish Factors Inhibiting Voluntary Tax Compliance among the Small and Medium Enterprises (Smes) in the Zambian Economy, Survey of (Smes) of Kamwala Township in Lusaka City

Author(s)	Mr. Christopher Chaponda, Dr Bwalya Chilolo
Country	Zambia
Abstract	The purpose of the study was to establish factors inhibiting voluntary tax compliance among the SMEs in the Zambian economy of Kamwala Township in Lusaka city. The study applied both the qualitative and the quantitative approaches. A sample of 393 SMEs was calculated with confidence level of 95% using Slovin’s formula. The questionnaire was used to collect the primary data. The instrument made it easier by the researcher to obtain thorough answers from the respondents. The total of 393 questionnaires was administered to the respondents of which 369 respondents answered and returned the questionnaires representing a response rate of 94%. The literature review was conducted to collect secondary data through the reviewing of related published literature at global, region and local perspective. The techniques of probability; simple random and sampling among others were used as they were unbiased, accurate and current. Additionally, interview guide was applied. The quantitative data was analysed through pie charts, tables and figures. Additionally, the five (05) Likert scale was used to collect data and quantified. The qualitative data was analysed through the technique approach of thematic contents analysis and ensured theoretical saturation. The collected data was consequently analysed using a Statistic Package for Social Sciences (SPSS). The results showed that the independents variables on the conceptual framework had a direct effect on a dependent variable of tax inhibiting factors among the SMEs of Kamwala Township in Lusaka city. The findings among others were; lack of tax incentives and high tax rate made SMEs to inhibit tax. Further findings revealed SMEs never saw the benefits derived from tax payment leading to tax evasion and tax avoidance. Additionally, low education background, irregular audits and fewer levels of trained staff of accountants to record and interpret tax rules and regulation was found to be a factor that led to non-tax compliance on the SMEs. Further, lack of information on tax filling systems and difficulty in the interpretation of tax rules and regulation was found to be another factor that caused SMEs to inhibit tax. The study concluded among others ZRA an institution mandated for handling all tax matters in the nation in collaboration with the ministry of finance and national planning must consider carrying out robust awareness campaigns on tax education in order to enhance information tax base on SMEs. The study recommended that ZRA must consider increasing tax incentives, transparency in tax revenue expenditure, simplify tax payment systems among SMEs of Kamwala Township in Lusaka city.
Keywords	Kamwala Township, Tax, Small and Medium Enterprises, Zambia Revenue Authority, Tax Evasion.
Field	Business Administration
Published In	Volume 7, Issue 4, July-August 2025
Published On	2025-08-03
DOI	https://doi.org/10.36948/ijfmr.2025.v07i04.43908
Short DOI	https://doi.org/g9vzjh

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A Study to Establish Factors Inhibiting Voluntary Tax Compliance among the Small and Medium Enterprises (Smes) in the Zambian Economy, Survey of (Smes) of Kamwala Township in Lusaka City

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