Promise
Strengthen tax policy and administration to broaden the tax base
Promise History
Government of Zambia re-imposes tax on Fuel starting 30 September 2022
Minister of Energy Permanent Secretary reimposed tax on fuel starting 30 September 2022.z
A friendlier minerals tax regime introduced
Zambia has introduced a friendlier minerals tax regime as it hopes to ramp up copper production to take advantage of the commodity boom
New tax measures introduced
Ministry of Finance introduces new tax measures in the 2022 Budget - which include:
- increasing the exempt threshold for Pay-As-You-Earn (PAYE) to K4,500 from K4,000 per month
- reducing the general corporate income tax rate from 35% to 30%. For telecommunications companies, it would retain the higher 40% top marginal rate.
- making the mineral royalty levy deductible for corporate income tax purposes. The change is intended to enhance investment in the sector and align with international practices.
- continued pandemic-related relief for the hospitality sector, the 15% corporate income tax rate for hotels’ income from lodging and food services would be extended another year, through 2022.
- To help with local job creation, the budget would also suspend corporate income tax for manufacturers of ceramic products.
- introducing a 20% withholding tax on reinsurance placed with non-Zambian firms.
Government to review policies to reduce fiscal deficit
President Hichilema delegated his new government and officials to review policies to reduce fiscal deficit
Economic team assigned to evaluate tax errors
The President assigned an economic team to evaluate tax errors. The team is already reviewing the current structure of the tax system.
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