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More Money!…as Tax Threshold Increases From K2,200 to K3,000
GOVERNMENT has increased the tax exemption threshold under Pay-As-You-Earn (PAYE) from K2,200 to K3,000 per month, a move that will increase take-home pay for the lowly-paid workers.
In his 2014 national Budget presentation to Parliament in Lusaka yesterday, Finance Minister Alexander Chikwanda said the upward adjustment represented an increase of more than 36 per cent.
Mr Chikwanda said the expected revenue loss from the measure was K956.6 million.
“Mr Speaker, as a demonstration of our commitment of putting more money in our people’s pockets, I propose to increase the current exempt threshold of PAYE by more than 36 per cent from K2,200 to K3,000 per month and adjust the bands accordingly,” he said.
The proposed PAYE regime for 2014 would entail that workers earning up to K3,000 would not pay tax, while those earning from K3,001 to K3,800 per month would pay 25 per cent tax.
Workers earning from K3, 801 to K5, 900 per month would pay 30 per cent while above K5,900, tax would be pegged at 35 per cent.
Mr Chikwanda proposed to increase excise duty on airtime from 10 per cent to 15 per cent.
He also proposed to revoke the Statutory Instrument that suspended excise duty on clear beer so that the substantive duty rate of 60 per cent is reintroduced with revenue gain estimated at K514.8 million.
Property transfer tax rate had been increased from five per cent to 10 per cent and the measure was expected to generate an additional K100 million.
The minister said money transfer service within and outside the country would attract a charge of 0.2 per cent of the value transferred to a recipient.
Mr Chikwanda said to effectively improve tax compliance and curb tax evasion, provisions relating to access to information would be enhanced.
He further proposed amendments to the Customs and Excise Act, Income Tax Act and Value Added Tax Act so as to update, strengthen and remove ambiguities and to make tax administration more effective.
On non-tax revenues, Mr Chikwanda said as part of a comprehensive land reform programme, the Government had launched the Integrated Land Management Information System whose benefits, among others, were to strengthen the administration of land and regularise land ownership through surveying and titling of land countrywide.
“This measure will improve certainty of land location and ownership, enhance security of tenure for both customary and state land, improve transparency in land transaction procedures and increase revenue collection, among others,” he said.
The Government, he said, had embarked on tolling of selected major roads whose proceeds would be channelled to the rehabilitation and maintenance of roads countrywide.
He said toll fees collected from toll gates based on the Road User Pay principle was one of the most sustainable sources of financing for the roads.
Mr Chikwanda said tolling of commercial traffic would commence before the end of this year using weighbridges.
He proposed to make an upward adjustment to various fees and fines to bring them to appropriate cost recovery levels of providing the respective services.
The fees would include those collected by the ministry of Lands, Natural Resources and Environmental Protection, ministry of Information and Broadcasting Services, ministry of Mines, Energy and Water Development and the ministry of Home Affairs and these would be introduced in January, next year.
Government would raise an estimated K550 million from the non-tax measures in 2014.
Posted by Editor
on October 12, 2013. Filed under LATEST NEWS.
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October 12, 2013 at 9:54 am
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Lunga Pwevo
October 12, 2013 at 10:15 am
THERE IS NO MONEY IN PEOPLE’S POCKET.THE GOVT HAS IN REALITY REMOVED MONEY FROM PEOPLES POCKETS BY
1. INCREASING TAXATION
2. IMPOSING A WAGE FREEZE
3. SUSPENDING EMPLOYMENT OF TEACHERS NURSES AND OTHERS IN THE PUBLIC SERVICE.
THIS IS A NEGATION OF THE PROMISE OF MORE MONEY IN PEOPLES’S POCKETS WHICH THEY PROMISED.
B1
October 12, 2013 at 10:22 am
more money the bige eeefyo
Medical Doctor
October 12, 2013 at 10:39 am
@lunga pwevo words of wisdom indeed.politics is a dirty game of playing tricks on the uninformed
wisdom
October 12, 2013 at 11:55 am
Nosonse.
CRC
October 12, 2013 at 12:53 pm
PF will only rule upto 2016,it will never go beyond one term.Zambians are upset and frastrated by the poor govering of this nation by PF.I want to use this channel to tell Mr Sata that you and your cabinet ministers have failed to deliver on the promises u made during your campaing period.
Kasenge Richard
October 12, 2013 at 1:01 pm
An ambitous budget ni zwaaaaaa!
pitas
October 12, 2013 at 1:47 pm
let’s wait for jenuary to come with the increament from the company I may be rejoycing just like the teachers.
MWISHO
October 12, 2013 at 3:42 pm
Atleast TAXES would have started from 20%,25% and 30%
robj
October 12, 2013 at 6:23 pm
good budget ba chikwanda.
Uwakwamununga
October 12, 2013 at 7:59 pm
twalalolela.
before you jump for joy
October 12, 2013 at 8:30 pm
Before you celebrate ask yourselves a few important questions
1. Where is the money to pay civil servants going to come from if nobody is paying tax?
2. Are you really for an increase in public borrowing? GRZ bonds and T-bills will only delay the ultimate collapse and suffering of the masses!
3. Are you will to mortgage Zambias future and expect our children and their children to pay Euro Bond interest and principle repayments?
4. GRZ is already grabbing the NAPSA funds and you old farts won’t even have your retirement benefits when you’re 65. MCS will have died or shifted to UK by then to live like Augusto Pinochet.
Bull
October 13, 2013 at 9:37 pm
PF site. Id10ts
Isaac
October 14, 2013 at 9:43 am
Quite a nice budget a human being is a critical animal will never appreciate even on straight forward issues. Ho.Chikwanda,that was a nice budget even your predecessors have recommended.
Ubepelefwe
October 15, 2013 at 4:33 pm
bafikala imwe the govt is very focussed on our walfare stop dragging their effort down you stinkin shit from your careles and dirty mouth