ZAMBIA Revenue Authority (ZRA) Commissioner General Dingani Banda says the proposed changes to the Pay As You Earn (PAYE) rate in 2027 will not affect 93 percent of employees. Mr Banda says the proposed 39.5 percent PAYE rate will apply only to 6.7 percent of employees earning above K37,000, leaving 93.3 percent unaffected. The Commissioner

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ZAMBIA Revenue Authority (ZRA) Commissioner General Dingani Banda says the proposed changes to the Pay As You Earn (PAYE) rate in 2027 will not affect 93 percent of employees.

Mr Banda says the proposed 39.5 percent PAYE rate will apply only to 6.7 percent of employees earning above K37,000, leaving 93.3 percent unaffected.

The Commissioner General spoke this morning at the 2027 Budget Symposium in Lusaka.

He said claims that the tax adjustments would burden most workers were unfounded.

“Out of 100%, approximately 7% will be affected by the new tax measure,” Mr Banda said.

He reminded that the ZRA revenue target is expected to rise from K185.0 billion in 2026 to K201.4 billion in 2027.

Mr Banda urged taxpayers to work with the Authority to build a culture of compliance.

“Collaborate with ZRA to fight corruption. This is one of the highest risks to Domestic Resource Mobilisation (DRM),” he said.

On its part, ZRA is implementing strategic measures to drive Domestic Resource Mobilisation. The measures include automating collection processes, digitalisation, and strengthened International Tax Cooperation and information exchange.

Other measures include data-driven compliance strategies and an integrated property management system that integrates systems across the Ministry of Lands, ZRA, local authorities, and utility companies to strengthen compliance and enforcement efforts.

ZRA’s contribution to the National Budget in 2027 is expected to be 70.7% of the total 82.1% DRM.

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