Zambia: Tax provisions in 2017 budget

Zambia: Tax provisions in 2017 budget

The 2017 budget in Zambia includes tax proposals that would affect business and individual taxpayers, and would be effective 1 January 2017.

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Among the tax provisions in the budget are the following proposals:

  • Changes to the exemption threshold, a marginal income tax rate increase, and tax band adjustments for individual taxpayers
  • A proposed tax at a rate of 10% on rental income earned by “statutory bodies”
  • An increase in the rate of advance income tax on imports of goods, from 6% to 15%
  • Changes to the turnover tax regime, by introducing tax bands and presumptive amounts
  • An increase in the capital allowances rate on plant, equipment, and machinery used in farming
  • A levy imposed on employers for “skills development” payments made to employees
  • A requirement that all financial institutions require bank account holders to have a taxpayer identification number
  • A change to the date for filing income tax returns and for paying the balance of the amount of tax due (moved from 30 June to 21 June)
  • Concerning the value added tax (VAT), a proposal to repeal the VAT group registration rules, to make input VAT incurred prior to registration a non-deductible amount, to make input VAT on petrol non-claimable, and to restrict input claims on diesel (among other items)
  • An increase in the excise tax (duty) on air time
  • An increase in customs duty on spare parts for certain machinery and equipment, on cigarettes, and on plastic shopping bags (among other items)

 

Read a 2016 report [PDF 4.16 MB] prepared by the KPMG member firm in Zambia

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