Zambia’s Ministry of Finance and National Planning Minister Situmbeko Musokotwan presented the 2025 Budget Speech to the National Assembly on 27 September 2024.

The budget focuses on revenue generation through limited tax measures without offering any tax concessions.

Following the successful restructuring of Zambia’s external debt, the Minister said the government is seeking to bolster domestic resource mobilisation to effectively manage the debt and maintain public service delivery. This can be achieved through the rationalisation of tax and non-tax policies, coupled with improved administration and compliance.

An Advance Income Tax at 15% on remittances exceeding USD 2,000 or its equivalent has been introduced. This will be for transactions made without a valid Tax Clearance Certificate. The Advance Income Tax will also apply on non-compliant exporters.

An increase in corporate income tax rate to 20%  from 15% applicable to profits realised from export of non-traditional products and value addition to copper cathodes. This tax rate increase aligns with the government’s commitment to harmonise the corporate income tax rate. The harmonisation is aimed at unifying the income tax regime over the medium-term.

The introduction and increase of Selected Goods Surtax applicable on imports of specified products which are locally manufactured. This is aimed to support local industries and encourage further investments.

The introduction of automatic annual adjustments to the excise duty on tobacco products, fuel, and used motor vehicles, based on the previous year’s inflation rate, with a cap of 20%.

A 20% increase in the presumptive tax bands is included for operators of motor vehicles used for passenger transportation.

An increase in excise duty on non-alcoholic beverages to K1 per litre is being introduced from the current 60 Ngwee.

The tax measures will take effect on 1 January 2025.