Key proposals include a 1% MAT on turnover, 15% to 20% withholding tax on government securities, and excise duty hikes on cigarettes, alcohol, sugary drinks, and betting services. 

Zambia’s National Assembly has advanced the Income Tax (Amendment) Bill 2025 and the Customs and Excise (Amendment) Bill 2025, which seeks to introduce new tax measures under the 2025 Supplementary Budget to boost government revenue.

This follows after Zambia announced its 2025 Budget on 27 September 2025, which introduced tax reforms targeting income tax, turnover tax, VAT, property transfer tax, and excise duties.

These changes aim to boost government revenue and enhance tax compliance across multiple sectors.

The key proposals include:

1% minimum alternative tax (MAT) on turnover

This ensures all companies with significant turnover contribute to revenue, exempting those under presumptive or turnover tax regimes.

Increase in withholding tax on government securities

This proposal raises the tax on interest from treasury bills and bonds from 15% to 20% for both residents and non-residents.

Excise duty adjustments

The Customs and Excise (Amendment) Bill 2025 aims to increase government revenue and reduce harmful consumption by raising duty rates on certain goods and introducing a 10% excise duty on betting services.

Excise duty rates are set to increase for:

  • Cigarettes: From ZMW 452 to ZMW 750 per 1,000 cigarettes.
  • Clear beer: From 40% to 50%.
  • Spirits and wine: From 60% to 80%.
  • Sugary drinks: From ZMW 1.00 per litre to ZMW 2.00 per litre.
  • Betting services: New 10% excise duty.