GOVERNMENT has introduced a top marginal Pay As You Earn (PAYE) tax rate of 39.5 percent for individuals earning above K37,000 per month. Minister of Finance and National Planning, Dr Situmbeko Musokotwane, said individuals earning K37,000 and below would continue to be taxed under the current tax regime and would therefore not be affected by

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GOVERNMENT has introduced a top marginal Pay As You Earn (PAYE) tax rate of 39.5 percent for individuals earning above K37,000 per month.

Minister of Finance and National Planning, Dr Situmbeko Musokotwane, said individuals earning K37,000 and below would continue to be taxed under the current tax regime and would therefore not be affected by the measure.

He said only the portion of income exceeding K37,000 would be subjected to the new 39.5 percent tax rate.

Dr Musokotwane said the measure was part of Government’s commitment to strengthening domestic revenue mobilisation.

“Madam, as part of Government’s commitment to strengthening domestic revenue mobilisation, I propose to adjust the Value Added Tax (VAT) rate to 16.5 percent from the current 16 percent,” Dr Musokotwane said.

The Minister presented the 2027 National Budget in Parliament yesterday.

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