2019 Budget Speech Highlights
In her inaugural national budget presentation, Zambian Finance Minister, Honourable Margaret Mwanakatwe, informed the nation that the 2019 budget was framed on building on the firm foundation of the past seven years and tackling the challenges ahead.
The theme of the 2019 National Budget is “Delivering Fiscal Consolidation for Sustainable and Inclusive Growth”.
The budget objectives are as follows:
- GDP growth of 4%
- Inflation of between 6% and 8%
- Reduce the fiscal deficit to 6.5% of GDP from 7.4% in 2018
- Increase domestic revenue to not less than 18.4% of GDP from 17.7% in 2018
- Reduce domestic borrowing from 4% to 1.4% of GDP
- Digitalise the entire revenue collection process in an effort to broaden the tax base and enhance compliance levels
- Raise international reserves to at least 3 months of import cover
- The Minister proposed to roll out an increased K86.8 billion budget next year, or 28.9% of GDP, up from K71.6 billion in the 2018 national budget.
- It is proposed that Value Added Tax (VAT) be abolished and replaced with Sales Tax. Guidance on how the Sales Tax will be administered is yet to be provided. The Sales Tax will be non-refundable, and Government expects the process to be simpler
- Amendment of the VAT Act to provide for the prosecution of the directors or managers of a company, where the company commits an offence under the VAT Act
- In 2019, Government will commence with the implementation of the National Health Insurance Act No 2 of 2018 in a phased manner and will ensure universal access to quality healthcare services
- No changes have been proposed to the existing personal income tax regime, therefore the PAYE bands and rates remain as follows:
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