CUT PAY AS YOU EARN TO 15%, ZCTU TELLS GOVT, PEOPLE ARE BURDENED.
The Zambia Congress of Trade Unions (ZCTU) has called on Government to reduce Pay As You Earn (PAYE) tax rates in the 2027 national budget, arguing that workers are carrying too much of the burden of raising national revenue.
ZCTU president Blake Mulala says Government should explore other ways of increasing revenue instead of relying heavily on workers’ earnings.
Mulala says the Congress has proposed reducing PAYE rates to 15 percent for the lowest taxable band, 20 percent for the second-highest band and 25 percent for the highest tax band in the 2027 national budget
The proposal is aimed at easing the tax burden on workers and allowing them to retain more of their hard-earned income.
However, the proposal comes amid a debate over whether reducing PAYE would be the right move for the country’s revenue collection.
On Monday, the Zambia Institute for Policy Analysis and Research (ZIPAR) argued that Government should not reduce PAYE rates in the 2027 national budget, citing the country’s revenue needs.
The differing positions have set the stage for a debate over how Government can balance the need to raise revenue with calls to ease the financial pressure on workers.
Zambian Watch.