ZAM Calls for Tax Reforms in 2025 National Budget
The Zambia Association of Manufacturers (ZAM) has urged the government to include targeted measures in the 2025 national budget to address various challenges impacting the manufacturing sector.
In a recent statement, ZAM Chief Executive Officer Muntanga Lindunda emphasized the need for reforms to alleviate the high tax rates that are hindering the competitiveness of local manufacturers.
“Local manufacturers are burdened with multiple taxes and levies, making their businesses uncompetitive in a challenging operating environment. Identifying and addressing these tax constraints is imperative,” Ms. Lindunda stated.
Ms. Lindunda pointed out that corporate income tax (CIT) on profits and Value Added Tax (VAT) remain particularly high. While the recent reduction of CIT to 30% was noted and appreciated, she explained that Zambia’s manufacturing CIT rate is still significantly higher than that of the agriculture sector and places Zambia at a disadvantage compared to other countries in the region.
“The high CIT rate is turning Zambia into a net importer of illicit products, which harms legitimate, tax-paying local manufacturers and ultimately impacts the Zambian economy and its people,” she warned.
Ms. Lindunda highlighted the opportunity presented by the establishment of the Africa Continental Free Trade Area (AfCFTA) in 2020.
She urged the government to leverage Zambia’s strategic land-linked position to enhance domestic competitiveness in locally manufactured goods that could be exported, thereby increasing non-traditional exports.
“The government should actively work to upscale domestic competitiveness, support the export of locally manufactured goods, and protect the domestic industry from external dumping,” she said.
