TAXES, BROKEN PROMISES, AND THE SQUEEZE ON ZAMBIANS: UPND’S FISCAL BURDEN REVEALED
EVIDENCE-BASED ASSESSMENT OF ZAMBIA’S TAXATION TRAJECTORY (2011-2026)
By The Magnet Policy Analysis Desk
Four years into the UPND’s mandate, the promise of tax relief has been shattered by the harsh reality of relentless fiscal expansion. Far from easing the burden on struggling families and businesses, the government has tightened its grip, extracting more from Zambians through sweeping new levies and soaring service fees. The gulf between electoral rhetoric and lived experience is now unmistakable: instead of economic breathing room, citizens find themselves squeezed harder than ever by a tax regime that prioritizes revenue over real reform.
ELECTORAL PROMISES VS. POLICY REALITY
The UPND pledged in 2021 to cut taxes and support growth, positioning itself as more business-friendly than PF. Yet the first five UPND budgets introduced or raised 11 major taxes—mirroring the PF’s 10-year record.
MOBILE MONEY TAXATION
A striking feature of UPND fiscal policy is the mobile money transaction levy, introduced in 2024 and doubled by 2026. Fees now range from K0.32 to K8.00 per transaction, burdening millions who rely on mobile platforms for daily transactions—despite over half the population’s financial inclusion depending on such services.
PROPERTY TRANSFER TAX INCREASES
Property transfer taxes rose from 5% to 8% under UPND, with mining right transfers taxed at 10% and exploration rights at 8%. These are among southern Africa’s highest transaction costs, driving up barriers for individuals and businesses alike.
GOVERNMENT FEES AND DIASPORA IMPACT
Massive increases in government service fees were announced, with citizenship certificate fees for the diaspora now at USD 10,000 and applications at USD 1,000—a leap well over 2,000% from previous rates. Such costs effectively exclude ordinary Zambians from essential government services and citizenship retention.
MINING SECTOR TAX DISPARITIES
Of the nearly 1,500 mining licenses issued since 2023, small-scale Zambian operators received the majority. However, only large mining corporations benefit from full capital allowances, VAT claims, and loss offsets. Small-scale miners face much higher average and marginal effective tax rates, complex compliance, and little access to incentives enjoyed by multinational firms.
PF VS. UPND TAXATION COMPARED
PF (2011–2021) raised mineral royalties by over 1,500%, introduced and escalated property transfer taxes, and increased duties on various goods—enacting 11 major tax hikes.
UPND (2021–2026) introduced mobile money levies, raised property transfer taxes, and escalated service fees, while offering modest mining sector relief—matching the PF on number of major tax changes.
THE SHIFT TOWARD TRANSACTION TAXES
Unlike the PF, which targeted mostly the mining sector and traditional goods, UPND now taxes digital financial services and day-to-day transactions. This new emphasis on everyday transactions impacts ordinary citizens more than previous schemes targeting industry or luxury goods.
POLICY COHERENCE CHALLENGED
Despite rhetoric supporting small businesses and economic empowerment, frequent tax and fee hikes contradict government objectives of inclusion. High transaction and property costs create structural obstacles for Zambian enterprises and diminish the intended benefits of selective tax relief for small miners.
BUDGET REVENUE STRATEGY
The UPND’s focus on immediate revenue from transaction taxes and fees brings in funds quickly, but risks further discouraging formal commerce and economic growth. Development economic insights suggest that lower transaction taxes foster growth and formalization—a principle not reflected in current Zambian fiscal practice.
CONSISTENCY AND ELECTORAL ACCOUNTABILITY
Fiscal contradictions are clear: mining sector relief exists, but simultaneous tax expansions erode any net gain for small-scale players. With 2026 elections nearing, voters have a concrete record to assess the alignment between government promises and delivery.
CONCLUSION
The UPND’s tax legacy is not merely one of inherited policies—it is one of deepened burdens and missed promises. Rather than charting a new path, the administration has entrenched and expanded a system that extracts more from ordinary citizens, entrepreneurs, and small-scale miners while favoring established corporate interests. The introduction of new transaction taxes and staggering increases in service fees amount to a direct assault on the wallets of every Zambian family and business, undermining any credible claim to economic empowerment or reform.
Despite campaign pledges to lighten the tax load and spur local enterprise, the reality is an even harsher landscape for those least able to pay. Small Zambian businesses and miners—supposedly at the heart of the nation’s development vision—continue to face crippling tax rates, while multinationals enjoy generous loopholes and incentives. This not only betrays the “New Dawn” promise but threatens to suffocate the very grassroots prosperity the government claims to champion.
As the nation approaches the 2026 elections, the UPND must answer for a record that, despite stabilization headlines, has failed thousands of Zambians at the microeconomic level. Unless there is a radical shift in both priorities and implementation, the hope of broad-based, citizen-driven growth will remain empty rhetoric—and the cost will be borne by those who can least afford it.