On 29 September 2023, the Minister of Finance and National Planning, the Honorable Situmbeko Musokotwane , presented the 2024 Budget Speech to the National Assembly of Zambia. Important tax measures proposed in budget include the following:
- Raise the corporate income tax deduction from 14.2% to 20% of taxable profits for the initial five years of operation for companies situated in rural regions.
- Expanding the local content incentive by adding a 2% allowance on income generated from value addition to sorghum and millet, in addition to cassava, mango, pineapple, and tomato, which already qualify for the local content allowance.
- Extend the accelerated depreciation of up to 100% for developers of Multi-Facility Economic Zones (MFEZ) regarding any newly acquired equipment, plant, or machinery.
- Introducing a tax holiday on profits for a period of 5 years for domestic producers engaged in cotton seed and cotton ginning.
- Introducing a 10-year tax holiday for companies that generate profits from cotton spinning and thread weaving, and revising the surtax applied to specific products.
- Raising the monthly Pay As You Earn (PAYE) exempt threshold from ZMW 4,800 to ZMW 5,100 and modifying the PAYE income tax brackets by reducing the highest tax rate from 37.5% to 37%.
