93% OF WORKERS WON’T FEEL THE PROPOSED PAYE CHANGE, SAYS ZRA BOSS
Zambia Revenue Authority (ZRA) Commissioner General Dingani Banda has assured the public that the proposed 2027 changes to Pay As You Earn (PAYE) will leave 93 percent of employees untouched.
Mr. Banda explained that the proposed 39.5 percent rate would apply only to the 6.7 percent of workers earning above K37,000, meaning 93.3 percent will see no change.
Speaking this morning at the 2027 Budget Symposium in Lusaka, he dismissed claims that the adjustments would weigh heavily on most workers as unfounded.
“Out of 100%, approximately 7% will be affected by the new tax measure,” he said.
He also noted that ZRA’s revenue target is projected to grow from K185.0bn in 2026 to K201.4bn in 2027.
Mr. Banda called on taxpayers to partner with the Authority in building a culture of compliance, and to help root out corruption.
“Collaborate with ZRA to fight corruption. This is one of the highest risks to Domestic Resource Mobilisation (DRM),” he said.
For its part, ZRA is rolling out several measures to boost DRM, including automated collection processes, digitalization, and stronger international tax cooperation and information exchange.
Further measures include data-driven compliance strategies and an integrated property management system linking the Ministry of Lands, ZRA, local authorities, and utility companies to tighten compliance and enforcement.
In 2027, ZRA is expected to contribute 70.7% of the total 82.1% DRM in the National Budget.