LUNTE MP KAFWAYA SLAMS MID-YEAR TAX HIKE, WARNS UPND ON POLICY INCONSISTENCY

LUNTE MP KAFWAYA SLAMS MID-YEAR TAX HIKE, WARNS UPND ON POLICY INCONSISTENCY

Parliament, 10 July, 2025

Lunte Member of Parliament, Hon. Mutotwe Kafwaya, has raised sharp criticism against the United Party for National Development (UPND) government for introducing a mid-year amendment to the withholding tax rate, calling it “bad for business” and a clear sign of policy inconsistency.

Speaking on the floor of the House during the second reading of the Tax Amendment Bill this morning, Hon. Kafwaya states that the government is betraying its own promises of creating a predictable and stable policy environment for business and investment.

“This tax law is being changed in the middle of the year, Madam Speaker,” Kafwaya said. “Businessmen and women have already made financial plans based on a 15% withholding tax. Now the government wants to increase it to 20% that is bad for business. That is bad for investors.”

He emphasized that businesses thrive on consistency, especially in taxation, and warned that unpredictable policy shifts undermine confidence in the Zambian economy.

“Investors who put money into government securities did so knowing the terms. Changing the goalposts mid-year is unfair. It discourages long-term planning and affects not only businesses but the ordinary Zambians who depend on those businesses for jobs and opportunities,” he added.

Kafwaya went further to highlight the broader economic uncertainty that investors are already grappling with fluctuating fuel prices, unpredictable electricity supply, and unstable exchange rates arguing that taxation should at least remain predictable.

“You can’t predict electricity, you can’t predict the cost of kwacha, and now you can’t even predict tax. That’s chaos for any serious investor,” he warned.

The Lunte MP also made reference to the government’s crackdown on informal trading without offering alternative income opportunities, stating, “When UPND chases people off the streets, they must find opportunities elsewhere. Where will that be if businesses can’t plan or grow?”

He ended his submission with a passionate appeal to the Minister of Finance to take responsibility and reflect on the long-term damage such erratic policies may cause politically and economically

“If the Minister is being misled, he must identify those people. Maybe even some of those who were sent to diplomatic positions have better capacity to project a stable budget. UPND must reflect, especially as 2026 approaches,” he said, invoking faith in his closing: “In Jesus’ name.”