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
• Government proposed to spend K163.7 billion in 2023, representing 31.4% of GDP.
• The budget will be funded from both external and internal sources such as grants, loans and revenue through tax collections.
• Government plans to maintain the inflation rate between 6% and 8%.
• Government increased the Constituency Development Fund (CDF) to 28.3 million kwacha from the current 25.7 million kwacha.
Proposed tax measures
• Increase the exemption threshold for PAYE from K4,500 per month to K4,800.
• Reduce the marginal tax rate for the second income bracket to 20% and adjust the income bands accordingly.
• Increase tax credits for persons with disabilities from K500 to K600 per month.
• 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.
• Reduce the corporate income tax rate to 25% from 30% on income earned from value addition to gemstones through lapidary and jewellery facilities.
• Exempt investment income on life insurance funds.
• 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 at info@crs.co.za if you require any additional information.
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