GOVERNMENT has decided to reach deeper into people’s pleasures, announcing a wave of tax hikes that will hit bars, betting shops, and soft drink shelves hard.
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Minister of Finance and National Planning Situmbeko Musokotwane says it is all part of a plan to raise extra money for the country’s K33.6 billion supplementary budget without running to borrow.
Dr Musokotwane last week presented to Parliament Supplementary Estimates No. 1 for 2025, and this week returned with a more detailed explanation that included tax hikes which will likely sting the average Zambian’s weekend routine.
Topping the tax list is a jump in excise duty on spirits and wines from 60 percent to a sobering 80 percent.
The government is also ending the 40 percent excise duty suspension on clear alcohol and replacing it with a straight 50 percent tax.
In cigarette corners, the cost of a puff is going up too, with excise duty per 1,000 sticks rising from K452 to K750.
The booming betting industry, which has become a religion for many, will now be taxed with a fresh 10 percent excise duty on betting services.
This is to formalise the industry and plug revenue leaks from unregulated operations.
Meanwhile, those addicted to fizzy soft drinks will also feel the pinch, with government proposing to double excise duty on sugary beverages from K1 to K2 per litre, another hit for those who pair their bottle of cola with a plate of chips and chicken.
Furthermore, the Ministry plans to raise the withholding tax on interest from government securities from 15 percent to 20 percent, potentially squeezing the returns of local banks, institutions, and individual investors.
The Minister told Parliament that the new measures are meant to boost domestic resource mobilisation without running back to borrow.
He said the targeted revenue will be complemented by an extra K1 billion to be raised through regulatory levies collected by agencies such as the Energy Regulation Board and Civil Aviation Authority.
Of the K33.6 billion supplementary budget, K11 billion will be used to settle fuel arrears, K8.5 billion to service debt, K6 billion will go towards agriculture, while the rest will support education infrastructure, social cash transfers, and other social sectors.
Parliament received the supplementary estimates today through the Expanded Planning and Budgeting Committee as changes, including the new taxes, are expected to take effect this July, meaning Zambians might need to sip and bet a little less or dig a little deeper into their pockets.
By George Musonda
Kalemba July 3, 2025
