Congress of Trade Unions urges Zambian govt to address inequality, high taxes, rising costs in 2025

The Zambia Congress of Trade Unions (ZCTU) has urged the government to adopt inclusive economic policies in 2025 to combat inequality, boost productivity, and improve household incomes.

ZCTU president, Blake Mulala, called for targeted tax reforms, advocating a reduction in the 37.5 percent Pay As You Earn (PAYE) tax burden on formal workers and an expansion of the tax base to promote equity in the taxation system.

In an interview with Zambia Monitor, Mulala also emphasized the need to scale up electricity imports to offset recent tariff hikes, enhance productivity among Small and Medium Enterprises (SMEs), and drive economic growth.

“Wage stagnation, high taxation under the PAYE regime, and the rising cost of living remain critical concerns for workers,” Mulala stated.

Mulala noted ongoing challenges in labour relations, including union suppression and non-compliance with labour laws, particularly in the private sector.

He stressed that many workers suffer abuse due to a lack of accessible reporting mechanisms.

To address these concerns, ZCTU says it plans to launch a toll-free call center in early 2025 to allow workers to anonymously report abusive employers.

Reflecting on Zambia’s socio-economic performance in 2024, Mulala highlighted the compounded challenges of drought, electricity shortages, and rising living costs, which had significantly affected productivity and household welfare.

“Commodity prices have continued to rise, with year-on-year inflation for November 2024 recorded at 16.5 percent, far exceeding the government’s target of six-eight percent,” he said.

Mulala pointed to the Jesuit Centre for Theological Reflection’s (JCTR) Basic Needs and Nutrition Basket, which climbed to over K10,600 for a family of five, leaving many workers unable to meet basic needs.

“Electricity shortages have severely impacted productivity, especially for SMEs. Combined with other factors, this has led the IMF to downgrade Zambia’s GDP growth projection for 2024 from 2.3 percent to 1.2 percent,” he added.

Mulala called for urgent and coordinated action to address these challenges, urging the government to prioritize workers’ welfare and economic resilience in the coming year.

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