The Minister of Finance has presented national budget for 2017 to the National Assembly on 11th November 2016.
The budget of 2017 highlights some important issues which are given below:
- PAYE threshold increased from K3,000 to K3,300;
- Individual income tax rate increased from 35% to 37.5% ( income band above 74,400 (ZMK);
- Advance Income Tax increased from 6% to 15%;
- All statutory bodies required to pay tax on rental income at the rate of 10%;
- Penalties for late submission of turnover tax returns introduced at the rate of 500 penalty units (K150) per month or part of the month;
- Capital allowances for plant, equipment and machinery used in farming and agro processing to increase from 50% to 100%;
- Skills development levied at a rate of 0.5% on the total emoluments paid by an employer.
The macroeconomic objectives:
- Attain real GDP growth of at least 3.4%;
- Retain domestic borrowing up to 2% of GDP;
- Limit the overall fiscal deficit up to 7.0% of GDP, based on cash;
- Attain domestic revenue mobilisation of at least 18.0% of GDP.
Customs and excise tax
- Excise duty on airtime to increase from 15% to 17.5%;
- A 10% duty on the exportation of maize has been introduced;
- Customs duty on fittings used for irrigation has been removed;
- Customs duty on plastic shopping bags has been increased from 25% to 40%;
- Customs duty on semi processed edible oils has been increased from 5% to 15%;
- Advance income tax on importation of goods has been increased from 6% to 15%;
- Customs duty on spare parts of different machinery and equipment has beenincreased from 5% to 15%;
- A surtax of 5% has been introduced on selected imported goods which are also produced locally.
due dates for the submission of tax returns as follows:
- For pay-as-you-earn: from the 14th day to the 10th day of every month;
- For provisional income tax: from the 14th day to the 10th day of the month following the end of every quarter;
- For excise duty: from the 20th day to the 15th day of every month; and
- For final income tax and payment of balance of tax: from the 21st day to the 30th day of every month.