Zambian Finance and National Planning Minister, Situmbeko Musokotwane, has presented the 2025 national budget to the parliament totalling K217 billion which he said was designed to address the pressing drought-induced difficulties affecting the nation.

In a detailed address to parliament in Lusaka on Friday, Musokotwane said it was necessary for innovative revenue-generating strategies to bolster the economy and improve the livelihoods of citizens grappling with these adversities.

The proposed 2025 budget represents a significant increase from the 2024 budget which was K177.9 billion and has already been supplemented by an additional K41.9 billion aimed at mitigating the adverse impacts of the ongoing drought.

Musokotwane laid out a comprehensive strategy to secure funding for the budget and noted that to finance the ambitious budget, there are plans to mobilize K174.2 billion through domestic revenue, while also seeking K8.2 billion in grants from cooperating partners.

According to the minister, the remaining K34.7 billion would be raised through borrowing, reflecting the government’s commitment to addressing fiscal challenges head-on.

He added that there is a proposed Advance Income Tax set at 15 percent on remittances exceeding US$2,000, specifically targeting transactions conducted without a valid Tax Clearance Certificate.

This measure, Musokotwane said, is aimed at combating
illicit financial flows and ensure compliance among businesses and would also apply to non-compliant exporters.

Additionally, Musokotwane announced an upward revision of the corporate income tax rate from 15 percent to 20 percent on profits derived from the export of non-traditional products and value-added copper cathodes.

“The harmonisation is aimed at unifying the income tax regime over the medium term,” he said.

Other notable proposals included the introduction of a K2,500 fee for resident permit holders who remain outside Zambia for more than six months, aligning with international standards.

Musokotwane also proposed a 10 percent excise duty on betting amounts and a significant increase in excise duty on non-alcoholic beverages from the current 60 ngwee to K1 per litre.

Furthermore, he suggested a 20 percent increase in the bands for presumptive tax on motor vehicle operators transporting passengers.

These measures are strategically designed to support the government’s goal of achieving a 6.6 percent real Gross Domestic Product (GDP) growth in the coming year.

No fewer than 29 people have been confirmed killed, with over 329,000 houses destroyed, leaving thousands of residents displaced in a devastating flood that engulfed Kebbi State in north eastern Nigeria.

The State Commissioner for Information and Culture, Yakubu Birnin Kebbi, who made the confirmation at a press conference on Friday, stated that the ravaging flood also submerged 858,000 hectares of farmland, wiping out key crops such as rice, millet, sorghum, and beans, sparking fears of an impending food crisis.

Kebbi said the state government was presently struggling to manage the aftermath of the flood as the scope of the disaster had overwhelmed local resources.

He noted that the State Governor, Dr Nasir Idris’s administration had done its best to assist those affected by the disaster, though the magnitude of the flood demanded more help from interventionist agencies.

He added that the state government had compiled a report on the flood’s impact, which would be submitted to federal agencies in a bid to secure more aid.

“Many of the people have lost their means of livelihood, the disaster has forced farmers into penury, shortage of food looms on the horizon, and our food security target is in jeopardy unless urgent measures are put in place to remedy the situation,” the Commissioner said.

“The Kebbi Government will provide improved seeds and other agricultural input to farmers to return to cultivation, but more is needed.

“Preliminary statistics show that seven persons died in Ngaski, eight in Maiyama, five in Kalgo, seven in Jega, and two in Birnin Kebbi, as a result of the flooding.

He however lamented the fact that the federal government and lawmakers from the state have not done much by way of assistance, adding that he was not aware of a N3 billion grant for flood mitigation from the Nigerian government as being insinuated.

“I am also surprised that members from Kebbi State in the National Assembly, including Senators, are yet to visit the areas ravaged by flooding to offer the necessary assistance and sympathy,” he emphasized.