GOVERNMENT URGED TO CONSIDER CORPORATE TAX CUT TO 25%
Lusaka… Sunday September 21, 2025 – Economist George Mtonga has called for a reduction in Zambia’s corporate tax rate from the current 30% to 25%, arguing that such a move would strengthen the country’s competitiveness in attracting foreign and domestic investment.
Mtonga, an MBA holder, said that the cut made in 2022 from 35 percent to 30 percent had been a step in the right direction, but insisted that more needed to be done if Zambia was to remain attractive in the African investment landscape.
He stated that investors compared Zambia’s tax regime with countries such as Mauritius and Tunisia, where the rate stands at 15%, Egypt at 22.5%, and South Africa at 27%.
According to him, maintaining a 30% rate risked pushing Zambia out of serious consideration by global capital.
The economist argued that lowering the tax rate would not necessarily reduce government revenue.
Instead, he suggested that it would broaden the tax base by encouraging compliance, attracting new businesses, and discouraging tax avoidance.
He further said that such a measure would create more reliable long-term collections.
Mtonga also emphasized the employment benefits of a corporate tax cut.
He explained that reduced taxation would free up resources for companies to reinvest in expansion, hiring, and training, while also encouraging the formalization of small and medium enterprises, which could ultimately strengthen Zambia’s tax net.
He further highlighted that Zambia had an opportunity to position itself as a leading investment gateway in Southern Africa.
By cutting the rate to 25%, he said, the country would gain a competitive edge over regional peers such as Tanzania, Malawi, and Kenya, all of which have rates around 30%.
According to Mtonga, reducing corporate tax was not about giving concessions to corporations but about signaling confidence in Zambia’s economic future.
He insisted that a 25% rate would demonstrate that the country was reform-minded, forward-looking, and ready to unlock new capital inflows.
Meanwhile, Mtonga urged government not to shy away from bold reforms, saying that a lower corporate tax rate should be viewed as an investment in growth, jobs, and long-term competitiveness.
I also support this proposal. Reducing taxes would stimulate businesses’ growth, because it would free up funds for reinvestment and other business operational expenses. I would even go further by proposing a reduction in the PAYE to a maximum of 25% and VAT of about 12.5% as well. This would free up money for people to spend in the economy to buy more goods and services, thereby further stimulating business growth due to the increased sales revenue resulting from a larger consumer base. The loss of revenue from this measure can be compensated by removing the tax exemption threshold for PAYE or lowering the threshold to a very negligible amount, say K500.
Before tax considerations, safety and investment analysis. Lower tax. benefits are valid, but not a straight jacket
This adjustment, and many others, will be made next year by the new president. No need to panic. There will be a new Sheriff in town. Oh, and mine tax holidays for his LGBT friends will be abolished. We will also work with the Panama government to return dirty money stashed there. This money will be used to build 1000 hospitals, 1000 schools, 200 universities, 500 malls, and 2000 solar power facilities, each supplying 2000 Mega Watts. With the remaining money, we will develop 10 towns so that they become cities, and make sure that 80 percent of all roads in Zambia have solid tarmac. There should never be a reason why one person should have this much money that he can not even account for its source.
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If you are poor, it does not mean everyone should be poor like you. The man worked hard for each coin he has, and there’s nothing you can do about it. Please stop showing your dullness in public; you are embarrassing yourself. Six presidents have been there before him, and none of them have found any wrongdoing on his part, but just because you are a failure in life and you think everyone is like you, I’m sorry to burst your bubble, but the man is thousands of times smarter and harder-working than you ever will be. And from continued accusations, you are not any different from a witch because your jealousy, envy, and hatred are out of this world.
Reduce taxes then how will you sustain public programs? With shrinking donor support you want to think reduce the very source of public resource sustainance?
Trickle down economics has never worked anywhere Mr. Mtonga. Its been tried and tested bwana…I has never worked. Its just means that those who control production will keep their wealth and not pass it down.
These warped ideas to gain brand recognition are not a ticket to public office. Crawl back into the hole you came from and let real men work.
@Mulenga, I think it is feasible to reduce taxes, but still collect more. What needs to be done is to expand the tax base. In other words, we have a few paying more, but why not have more paying less?