KunjyGroup
JF-Expert Member
- Dec 7, 2009
- 352
- 26
Zambian government has honoured one of its election promises of putting "more money in people's pockets" by lowering Pay As You Earn (PAYE).
And the PF government's budget has revealed that it will squeeze more money out of mining companies by increasing royalties to six per cent from three per cent as it proposes to spend 50 per cent of the K27.7 trillion budget on social sectors and infrastructure development.
The government has proposed to double the exempt threshold for PAYE to K2 million (Tsh. 600,000) per month. Kwaiyo mshahara kima cha chini ni karibu Tsh. 600,000.
The balance of 5.6 per cent of GDP will be total borrowing out of which 1.3 per cent of GDP will come from domestic borrowing and the balance of 4.3 per cent of GDP will be external financing.
According to Chikwanda, workers earning K2, 000, 000 and below per month would be exempted PAYE, while workers in the K2, 000, 000 - K2, 800, 000 per month bracket would pay 25 per cent PAYE.
Chikwanda also announced that government had proposed to abolish the 40 per cent upper corporate tax rates for banks to the standard rate of 35 per cent.
Within 30 days of being in office, the PF government lowered the statutory reserve ratios for both local and foreign currency deposits to five per cent from eight per cent previously, while the core liquid assets ratio has gone down to six per cent from nine per cent.
The move is aimed at improving liquidity of commercial banks as a desirable objective to facilitate low cost borrowing by enterprises.
And the PF government's budget has revealed that it will squeeze more money out of mining companies by increasing royalties to six per cent from three per cent as it proposes to spend 50 per cent of the K27.7 trillion budget on social sectors and infrastructure development.
The government has proposed to double the exempt threshold for PAYE to K2 million (Tsh. 600,000) per month. Kwaiyo mshahara kima cha chini ni karibu Tsh. 600,000.
The balance of 5.6 per cent of GDP will be total borrowing out of which 1.3 per cent of GDP will come from domestic borrowing and the balance of 4.3 per cent of GDP will be external financing.
According to Chikwanda, workers earning K2, 000, 000 and below per month would be exempted PAYE, while workers in the K2, 000, 000 - K2, 800, 000 per month bracket would pay 25 per cent PAYE.
Chikwanda also announced that government had proposed to abolish the 40 per cent upper corporate tax rates for banks to the standard rate of 35 per cent.
Within 30 days of being in office, the PF government lowered the statutory reserve ratios for both local and foreign currency deposits to five per cent from eight per cent previously, while the core liquid assets ratio has gone down to six per cent from nine per cent.
The move is aimed at improving liquidity of commercial banks as a desirable objective to facilitate low cost borrowing by enterprises.
