Tax compliance now required for above US$2,000 transfers outside Zambia
By Masauso Mkwayaya
Government has announced a new regulation requiring those transferring more than US$2,000 outside the country to present a tax compliance certificate or pay 15 percent of the total amount as an advance tax payment.
Finance and National Planning Minister SITUMBEKO MUSOKOTWANE says the 15 percent upfront payment will be refundable upon proof of tax compliance.
Dr. MUSOKOTWANE says the measure which takes effect next year is meant to address the large sums of money being transferred outside the country without adequate tax documentation, as highlighted in the latest Financial Intelligence Centre -FIC- report.
During a press briefing in Lusaka today, the minister further said Government has restructured about 80 percent of the country’s debt and is nearing completion on the remaining 20 percent.
MEANWHILE, Dr. MUSOKOTWANE said the recent Afrobarometer report, indicating that 66 percent of people believe the country is not moving in the right direction due to the high cost of living, did NOT consider current Government relief interventions.
He said the Afrobarometer report was compiled before Government fully rolled out its interventions aimed at mitigating the effects of the drought, which has raised the cost of living.
Dr. MUSOKOTWANE said part of the efforts has seen over 10 million people benefit from various social protection programmes designed to provide relief from the economic challenges caused by the drought in the 2023-2024 farming season.
He said Government has increased the Social Cash Transfer allocation from K200 to K400 per month for 1.3 million households.
Dr. MUSOKOTWANE added that about FOUR million households are now supported through social protection programmes, including Social Cash Transfer, Emergency Social Cash, Wetlands Emergency Programme, and Cash for Work, among others.
He expressed confidence that these interventions, along with the projected normal rainfall, will shift public perception as reflected in the Afrobarometer report.
The Finance Minister referenced the 2022 Afrobarometer report, which showed that 51 percent of Zambians felt the country was on the right track.
Dr. MUSOKOTWANE said the positive perception in the 2022 report was largely because the Country was not going through any drought.
