Making consumer incentive schemes work
This policy note examines the outcomes of consumer incentive schemes (CIS) encouraging consumers to ask for VAT receipts. Based on the learnings from previous schemes, the note outlines what a successful CIS could look like for Zambia.
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Fras-Policy-Note-May-2025.pdf
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Consumer incentive schemes (CIS) should integrate evaluation in their design to pinpoint where the greatest revenue potential exists. Although CIS are very context-specific, they can help ease the final mile problem of VAT when designed well.
Examples from Tanzania and Zambia indicate that consumer lottery prizes need not be very high to generate positive results. Nonetheless, the schemes should be well-advertised before their implementation.
The expansion of mobile money and phones can further facilitate consumer incentive schemes and make it easier for taxpayers to participate.