Analyzing the Effect of Factors Associated Non-Compliance Behavior on Tax Compliance Among Tax Payers in Lusaka District, Zambia

Tax compliance in Zambia is consistently low, especially among small and medium-sized businesses (SMEs), despite ongoing tax administration improvements. Current empirical research on tax compliance in developing nations frequently concentrates on individual factors and offers conflicting data regarding the significance of technology, compliance expenses, taxpayer attitudes, and tax expertise. In order to close this gap, this study looks at how these variables affect different taxpayer compliance levels in Zambia's Lusaka District. Tax compliance was classified into low, moderate, and high levels using primary data gathered from 373 taxpayers via a structured questionnaire and a multinomial logistic regression model. The results show that while technology adoption raises the relative likelihood of compliance, higher compliance costs, more tax expertise, and unfavorable taxpayer attitudes considerably lower the likelihood of compliance in the low compliance category. On the other hand, in the high compliance category, the percentage likelihood of compliance is greatly increased by technology, tax expertise, lower compliance costs, and favorable taxpayer impressions. The findings suggest that policy initiatives need to be tailored based on levels of compliance. Sustained investment in digital tax systems, taxpayer education, and administrative simplicity is essential for boosting voluntary compliance, even while enforcement procedures are still important. The report offers evidence that is pertinent to policy in support of certain tax administration reforms meant to increase domestic revenue mobilization and expand Zambia's tax base.