Ambassador Emmanuel Mwamba has raised concerns over the recent introduction of drastic tax changes that were neither highlighted in the 2025 National Budget nor included in the Zambia Revenue Authority’s (ZRA) or Zambia Institute for Policy Analysis and Research’s (ZIPAR) analyses. These adjustments, it appears, were made outside the formal budgeting process, likely under the second supplementary budget or as emergency changes to the National Borrowing Plan.
The changes were brought to light following a special sitting of Parliament summoned by Speaker Nelly Mutti to deliberate on the Planning and Budgeting Committee’s report regarding the Revised Annual Borrowing Plan for 2024.
Key Tax Changes Introduced:
- Property Transfer Tax: Increased from 5% to 8% on sales of land, buildings, and shares.
- Rental Income Tax: Raised from 12.5% to 16% for those earning above K800,000 annually in rental income.
- Turnover Tax: Increased from 4% to 5%.
- Turnover Threshold Adjustment: Businesses with annual turnovers up to K5 million (previously K800,000) are now subject to Turnover Tax, potentially moving more businesses away from Income Tax.
- VAT and Turnover Tax Overlap: Without a statutory instrument (SI) to align the VAT registration threshold to K5 million, businesses could fall under both VAT and Turnover Tax regimes simultaneously.
- Mobile Money Levy: Banks may now need to account for and remit taxes on bank-to-wallet transfers unless an SI is issued to provide exemptions.
These tax hikes come amidst Zambia’s struggles with climate change impacts, load-shedding, rising inflation, and an economic slowdown. The 2025 National Budget had ambitious goals under the theme “Building Resilience for Inclusive Growth and Improved Livelihoods,” targeting a GDP growth rate of 6.6% and prioritizing investments in mining, agriculture, and renewable energy.
However, as Ambassador Mwamba points out, these targets are far from being achieved, with economic performance lagging significantly. Inflation remains a persistent challenge, the budget deficit hovers at concerning levels, and resource constraints have impeded the government’s ability to meet its goals.
Ambassador Mwamba’s critique underscores concerns about transparency and accountability in fiscal management. The sudden introduction of tax hikes without public discourse or inclusion in the initial budget process raises questions about the government’s financial strategy. Are these measures a sign of deeper economic distress, or are they necessary interventions to meet revenue shortfalls?
The public and businesses alike are left grappling with the implications of these changes, as they come during a period of economic uncertainty and hardship for many Zambians. Whether these adjustments will stabilize the economy or further strain it remains to be seen, but they have undoubtedly stirred debate about the country’s fiscal direction.
Tax hikes in a time like this only serve to further stifle economic growth. A competent administration would, therefore, be tax cutting to stimulate economic growth. Small businesses, the major job creators, are more adversely affected by tax hikes.
Musokotwane is proper mafiosi. Doing all the illegal stuff underground and only resurfacing to reap where he hasn’t sowed.
That’s how puppet governments behave. They aren’t transparent
Excuse me !! Surely 60 years is enough time to realise we cannot cope on our own
the problem seems to me is the wrong puppet master is being chosen time and time again
They seem to want to play the field which wont work as they all have different agendas
@Tikki, the problem stems from the culture developed over the years whereby members of political parties look to their leaders to finance their activities. They don’t pay subscription fees or genuinely raise funds. In fact many now want to be paid for simply being members of that party. So when they finally get into government their sponsors determine policies. In this case Anglo America that has sponsored UPND since the days of Mazoka is in charge. Gregg Mills is their man. He also has an office at State House.
The PF under MCS received a lot of funding from Taiwan and later the Chinese. Under ECL they raised funds through inflated tenders. It’s happening now. They can’t distribute genuinely earned money like we have seen in by-elections. Until we Zambians address this I’ll, we should forget about real change.
Hech Hech was a great leader in opposition.
In real leadership he gave us gloves, graphs and grand pie charts before claiming he is the best leader in Zambia since independence! wow.
Most leaders become enemies of the people when they reach the apex.
As I struggle to find money, my mobile money transactions are surcharged, owing to this MOMO Levy. We’re fixed. With good numbers in parliament now, these guys are unstoppable. More fixing.
The tax burden will always fall on a few. The informal sector in Zambia is quite broad. And one has to ask how many of them pay their fair share of taxes? The majority driving and building homes yet the burden of taxes fall on those paying income taxes. Is that fair? Too often those working have had to bear the burden. Lets be objective and while I agree with what Ayatollah suggests about Political party membership and the manner campaigns are financed, that is besides the point of the article.
I have gone into hibernation until August 2026. Musokotwane should be ashamed that at his age he is behaving like he doesn’t know what we’re going through.
Increasing taxes when economy is at standstill.This is the time to reduce tax.When
Zambians are having challenges with loadshedding and the rest.
KKKKKKK
mathematic and accounting can be a problem to some people to understand , boss ambassador , look here:
(1) Majority of businesses in Zambia fall below ZMW5 million per year and yet just because there annual turnover was above ZMW800,000.00 they were paying taxes at 30% now they will be paying only 5% can’t you see a gain of 25% here.
Please do not run away from accounting and mathematics at school
That’s matole accounting. Turnover tax is on gross turnover regardless while income tax is on net profit. Turnover tax doesn’t take care of capital allowances or losses. You pay tax on your sales whether you have made any profit or not. This decision has increased the burden on small and medium enterprises that are mainly owned by Zambians. It’s taxes and more taxes for the locals