Zambian Government Reduces Tax On Beer

Zambian Government Reduces Tax On Beer

THE Government of the Republic of Zambia has reduced excise duty on clear beer in 2016 National budget to 40 per cent.

And the government has again maintained the PAYE tax bands and exempt thresholds, a key component of the budget that the majority of workers look forward to. Meanwhile, finance minister Alexander Chikwanda yesterday warned Zambians that 2016 will be another difficult year.

Presenting the K53.1 billion 2016 national budget, which was changed at the last minute from the initial K48.8 billion as presented to Cabinet on Monday, Chikwanda announced a reduction in excise duty on clear beer from 60 per cent to 40 per cent.

“….[this] is in order to spur local manufacturing, promote investment and curb smuggling,” he said.

Producers of clear beer recently complained to the government over the high excise duty on the product and asked for an adjustment to allow growth of the industry. And on PAYE, Chikwanda did not mention of any measures the government was taking to provide relief to workers, whose incomes have now been halved owing to the depreciation of the kwacha, with the tax-free band remaining at K3, 000.