On 30 September 2022, the Minister of Finance (MoF) proposed the 2023 Budget to the National Assembly. The important tax measures of the budget include:
- Reduce the corporate income tax rate from 30% to 25% on income earned from value addition to gemstones through lapidary and jewelry facilities;
- Remove the 20% withholding tax on re-insurance including retrocession;
- Exempt from withholding tax interest income earned on green bonds listed on the securities exchange in Zambia with a maturity of at least 3 years; and
- Increase the threshold for the allowable expenditure incurred in the construction of employee housing from ZMW 20,000 to ZMW 100,000;
- Replace the two-tier taxation system in the telecommunication subsector (30%/40%) with a single tax rate of 35%;
- Increasing the farm improvement allowance threshold upwards from ZMW 20,000 to ZMW 100,000;
- Introduce an accelerated rate of wear and tear allowance on a straight-line basis, not exceeding 100%, in respect of any implement, plant, and machinery acquired and used under a Public-Private Partnership project; and
- Increase the threshold for allowable expenditure for the construction of employee housing from ZMW 20,000 to ZMW 100,000.
