The GOVERNMENT has chosen to dig deeper into what people enjoy, announcing a series of tax increases that will significantly affect bars, betting shops, and soft drink prices.
Minister of Finance and National Planning Situmbeko Musokotwane explains that this is part of a strategy to gather more funds for the country’s K33.6 billion supplementary budget without needing to borrow money.
Last week, Dr. Musokotwane presented Supplementary Estimates No. 1 for 2025 to Parliament, and this week he came back with a clearer explanation that included tax increases which will probably impact the average Zambian’s weekend activities.
At the top of the tax list is a rise in excise duty on spirits and wines from 60 percent to a surprising 80 percent.
The government is also putting an end to the 40 percent excise duty suspension on clear alcohol and replacing it with a flat 50 percent tax.
For smokers, the price of cigarettes is going up too, with excise duty per 1,000 sticks increasing from K452 to K750.
The rapidly growing betting industry, which many people treat like a religion, will now face a new 10 percent excise duty on betting services.
This is intended to regulate the industry and stop revenue losses from unregulated activities.
Meanwhile, those who love fizzy soft drinks will also feel the impact, as the government plans to double the excise duty on sugary drinks from K1 to K2 per litre, which is another blow for those who enjoy a cola with their fries and chicken.
Additionally, the Ministry aims to increase the withholding tax on interest from government securities from 15 percent to 20 percent, which could reduce the earnings of local banks, institutions, and individual investors.
The Minister informed Parliament that these new measures are designed to enhance domestic resource mobilization without resorting to borrowing again.
He mentioned that the expected revenue will be supported by an additional K1 billion to be collected through regulatory levies.
