GOVERNMENT PROPOSES 39.5% PAYE TAX FOR ZAMBIANS EARNING ABOVE K37,000 PER MONTH – MUSOKOTWANE.
Government has proposed introducing a new top marginal Pay As You Earn (PAYE) tax rate of 39.5 percent for individuals earning more than K37,000 per month, in a move that could see higher-income earners contribute more in personal income taxes.
Minister of Finance and National Planning Dr Situmbeko Musokotwane says the proposed adjustment will only affect individuals earning above the K37,000 monthly threshold, while those earning below that amount will continue paying tax under the existing arrangements.
Dr Musokotwane emphasised that the proposed changes will not affect lower-income earners, stating that nothing will change for individuals earning below K37,000 per month.
The proposal introduces a higher top marginal tax rate, meaning that the additional rate would apply to income falling within the highest tax bracket rather than automatically taxing an individual’s entire salary at 39.5 percent.
The proposal is expected to attract public attention, particularly among middle- and high-income earners, as discussions continue around taxation, disposable income and the cost of living in Zambia.
Zambian Watch.