News FlashesOctober 31, 2023

CRS News Flash 18 October 2023 – ZAMBIA – 2024 Budget Speech

OCTOBER 2023 – ZAMBIA

BUDGET SPEECH FOR 2024

It is important that employers note the following:

Budget speech and proposed tax changes

On Friday, 29 September 2023, Minister Itumbeko Musokotwane delivered the 2024 budget to the National Assembly.

 

Budget highlights

·        The proposed 2024 budget amounts to ZMW177.9 billion or 27.8% of GDP, compared to the 2023 budget of ZMW167.3 billion or 31.4% of GDP.

·        In 2023, global economic growth is expected to slow down to 3.0% from 3.5% recorded in 2022.

·        Government’s objective is to:

·        Attain a real GDP growth rate of at least 4.8%;

·        Maintain international reserves to at least three months of import cover;

·        Reduce fiscal deficit to 4.8% of GDP;

·        Increase domestic revenue to at least 22% of GDP;

·        Reduce inflation to the 6-8% medium-term target band;

·        Limit domestic borrowing to no more than 2.5% of GDP.

·        In 2024, Government will continue to increase access to quality education through infrastructure development.

Proposed tax measures

·        Increase the exempt threshold for PAYE from ZMW 4,800 per month to ZMW 5,100, along with a reduction in the top bracket rate from 37.5% to 37.0% and other bracket adjustments.

·        Replace the definition of electronic fiscal devices (EFDs) with electronic invoicing systems (EISs) and provide for the use of EISs.

·        Provide for exemption from the mandatory use of EISs.

·        Implement an EIS that will enable the Zambia Revenue Authority to have real-time access to business transactions, prevent the use of fake invoices in VAT refund claims and ensure that only qualifying entities claim deductions.

·        Revise the definition of approved pension fund to clarify that approval is to be granted by the Pensions and Insurance Authority (PIA) and not the commissioner-general.

·        Remove the mandatory provision for new businesses to write a notice to the commissioner-general within 30 days when they are in receipt of their first income.

·        Commence consultations in 2024 to introduce a unified Tax Administration Act that will, among others, enable the harmonisation of tax treatment across different tax types and ease tax administration; and

·        Amend the Zambia Revenue Authority Act to introduce a whistleblower reward in 2024 that will enable the reward of whistleblowers who disclose information leading to the recovery of tax.

·        Exempt the Zambia Revenue Authority from the provisions of the Data Protection Act No. 3 of 2021.

The proposed PAYE table for 2024:

The 2024 budget tax changes will be enacted through various amendment acts which will apply from
1 January 2024.

To read the budget speech, follow the link

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