The 2025 Income Tax and Customs and Excise Amendment Bills currently

2025 Income Tax and Customs Amendment Bills

The Zambian Ministry of Finance and National Planning has introduced the 2025 Income Tax and Customs Amendment Bills, signaling a major shift in the country’s fiscal direction. These proposals aim to broaden the tax base, enhance revenue, and align regulatory frameworks.

• Minimum Alternative Tax (MAT): A 1% turnover tax for companies with high revenue but low profitability. Excludes those under presumptive or turnover tax regimes.
• Withholding Tax Increase: Raised from 15% to 20% on interest from government securities for both residents and non-residents.
• Excise Duty Adjustments: Higher rates on cigarettes, alcohol, non-alcoholic beverages, and a new 10% duty on betting services.
• Ministerial Powers: Broader authority to enact regulations, with calls for transparency and stakeholder consultation.

These changes are expected to impact cash flow, compliance systems, and investment strategies. Businesses are encouraged to review the implications and prepare accordingly.