OCTOBER 2022 – ZAMBIA
BUDGET SPEECH FOR 2023
It is important that employers note the following:
Budget speech and tax changes
On Friday, 30 September 2022, Honourable Dr Situmbeko Musokotwane, MP, Minister of Finance and National Planning, delivered the 2023 budget.
Budget highlights
โข Government proposed to spend K163.7 billion in 2023, representing 31.4% of GDP.
โข The budget will be funded from both external and internal sources such as grants, loans and revenue through tax collections.
โข Government plans to maintain the inflation rate between 6% and 8%.
โข Government increased the Constituency Development Fund (CDF) to 28.3 million kwacha from the current 25.7 million kwacha.
Proposed tax measures
โข Increase the exemption threshold for PAYE from K4,500 per month to K4,800.
โข Reduce the marginal tax rate for the second income bracket to 20% and adjust the income bands accordingly.
โข Increase tax credits for persons with disabilities from K500 to K600 per month.
โข Introduce a threshold on turnover tax and rental income tax of K12,000 per annum to be taxed at zero per cent and the balance at the applicable turnover tax rate.
โข Reduce the corporate income tax rate to 25% from 30% on income earned from value addition to gemstones through lapidary and jewellery facilities.
โข Exempt investment income on life insurance funds.
โข Reduce the withholding tax rate on interest earned by individuals from loans advanced to members under the savings groups such as co-operatives and village banking from 15% to 0%.
The PAYE table for 2023
To read the budget speech, follow the link.
Contact our legislation team atย info@crs.co.zaย if you require any additional information.ย
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