- Govt moves towards self-reliance
NKOMBO KACHEMBA,
TRYNESS TEMBO
Lusaka
MINISTER of Finance and National Planning Situmbeko Musokotwane yesterday presented a K284.8 billion 2027 national budget, with 82.1 per cent of the expenditure expected to be financed through domestic revenue.
The proposed budget, representing 28.4 per cent of gross domestic product (GDP), will see K41.9 billion coming from domestic and external borrowing and K9.2 billion from grants by cooperating partners.
“Government is now moving towards self-reliance,” the minister said, noting domestic revenue as a share of the national budget had increased from 58.7 per cent in 2021 to 76 per cent in 2024 and was projected to reach 82.1 per cent in 2027.
“There are no donors to pay, we must pay ourselves.”
The budget, themed ‘Grow Zambia: From stabilisation to unlocking opportunities, creating jobs and improving livelihoods for all’, seeks to translate macro-economic gains into increased production, investment, employment opportunities and improved household incomes.
Dr Musokotwane said the successful implementation of Grow Zambia Agenda requires strong, sustainable and predictable domestic revenue.
The proposed revenue measures, expected to raise an additional K10.8 billion, would balance support for productive economic activities with the need to ensure that individuals and businesses contribute fairly towards national development, he said.
Among the measures aimed at promoting industrialisation and local value addition, Government has proposed increasing customs duty on imported ceramic tiles to 40 per cent from 25 per cent, while selected imported aluminium bars, rods and profiles will attract a 20 per cent selected goods sales tax and 25 per cent customs duty.
The selected goods sales tax on imported meat products, including beef, sheep and goat meat, will increase to 30 per cent from 20 per cent, while crude soyabean and sunflower oils will attract 15 per cent customs duty and 10 per cent selected goods sales tax to encourage local production.
Government has also proposed harmonising the selected goods sales tax at 30 per cent on imported cement packaging and woven bags, while manufacturers of sanitary products will benefit from a 100 per cent customs duty suspension and VAT exemption on imported raw materials. https://enews.daily-mail.co.zm/welcome/home
