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The Zambia Chamber of Commerce and Industry (ZACCI) has raised concerns about the implementation of post-2025 budget taxes, cautioning that they could negatively impact businesses and the wider economy.
Key tax measures under scrutiny include increase in the mobile money levy, a rise in property transfer tax from five percent to eight percent, and an increase in rental income tax from 12.5 percent to 16 percent for individuals earning above K800,000 annually.
Other contentious measures include the reintroduction of a 15 percent export tax on gemstones and precious metals, a restriction limiting the use of losses to 50 percent of profits, a rise in turnover tax to five percent along with an increased threshold to K5 million, and a hike in fringe benefit tax for personal-to-holder vehicles.
ZACCI president, Anthony Kabaghe, emphasized the need for policies that focus on widening the tax base rather than adding more burdens to already overtaxed businesses.
He noted that such an approach is vital for fostering sustainable growth, equitable contributions to national development, and long-term economic stability.
Kabaghe explained that the business community is still grappling with the aftermath of the COVID-19 pandemic, the ongoing conflict in Eastern Europe, and the impact of a drought-induced energy crisis, which has disrupted operations and increased costs across various sectors.
He also expressed concern over the lack of consultation between the Ministry of Finance and the private sector, describing it as a deviation from Zambia’s longstanding tradition of collaborative policymaking.
Consultation, Kabaghe argued, has been a cornerstone of Zambia’s policy development process, ensuring fiscal measures are balanced, mutually beneficial, and reflective of business realities.
He described the absence of dialogue on the post-budget taxes as troubling and a threat to the partnership that has been vital to Zambia’s economic development.
While reaffirming ZACCI’s commitment to working with the government to achieve economic objectives, Kabaghe stressed the importance of fostering policies that prioritize transparency and collaboration.
He urged the government to engage the private sector and other stakeholders in meaningful consultations to ensure that the introduced measures were carefully reviewed and adjusted to support a thriving business environment.
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