Zambia proposes record K284.8 billion 2027 budget, as focus turns to growth

He said domestic revenue mobilisation had steadily improved since the United Party for National Development (UPND) assumed office.

“One of the UPND’s strategic focus since coming into Government has been to strengthen fiscal sustainability through improved domestic resource mobilisation as well as expenditure rationalisation,” he said.

To finance the remaining deficit, government plans to raise K41.9 billion through domestic and external borrowing, representing 14.7 percent of the budget, while K9.2 billion is expected from grants.

The budget also proposes a raft of tax changes, scheduled to take effect on January 1, 2027, aimed at broadening the tax base, encouraging local production and promoting investment.

Among the measures are increased import duties on ceramic tiles, selected aluminium products and processed meat products to protect local industries.

Government has also proposed suspending customs duty and value added tax (VAT) on imported raw materials used in the manufacture of sanitary products.

In the mining sector, the proposed measures include reducing mineral royalty on gold sold by artisanal miners to approved aggregators from six percent to three percent.

However, withholding tax on dividends paid by mining companies is expected to increase from zero to 15 percent, while a five percent export duty will be introduced on zinc concentrates.

Government has further proposed introducing a new 39.5 percent Pay As You Earn (PAYE) tax band for monthly earnings above K37,000.

VAT is also expected to increase from 16 percent to 16.5 percent as government seeks to strengthen domestic revenue collection.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.