Lusaka, Zambia – The Zambia Association of Manufacturers (ZAM) has called for adjustments to the country’s 2025 tax reforms, warning that the revised Turnover Tax (TOT) thresholds could place a significant strain on small manufacturers.
At the 2025 Tax Awareness Conference held in Lusaka, ZAM, in collaboration with ActionAid Zambia and the Zambia Tax Platform, engaged with officials from the Zambia Revenue Authority and the Ministry of Finance and National Planning to discuss the proposed changes and their potential impact on businesses.
ZAM President Ashu Sagar outlined the key concerns surrounding the adjustment of the TOT threshold from K800,000 to K5,000,000, alongside an increase in the tax rate from 4% to 5%. He stressed that these changes could disproportionately affect small manufacturers, making it harder for them to remain competitive.
To address these challenges, ZAM proposed several measures, including aligning the VAT and TOT thresholds to prevent double taxation, introducing a graduated tax system to ease the financial burden on smaller businesses, and allowing voluntary registration for VAT and TOT to offer companies flexibility in choosing the most suitable tax structure.
Stakeholders at the conference also discussed the importance of predictable tax policies, fair taxation, and simplified compliance processes to foster business growth. Industry leaders, government representatives, and civil society participants expressed a shared commitment to refining the tax system to support economic development.
