Zambia's 2027 budget taxes mobile money and raises VAT to 16.5%
By the AFREEQUE newsroom, based on News Diggers
Zambian Finance Minister Situmbeko Musokotwane presented a 2027 budget of 284.8 billion kwachas, up from 253 billion in 2026, with VAT rising from 16% to 16.5% and a 39.5% tax rate above 37,000 kwachas a month. The plan also includes a tax on mobile money transactions and 3,125 health sector recruits, according to News Diggers.
Zambian Finance Minister Situmbeko Musokotwane proposes allocating 38.2 billion kwachas to education and 30.3 billion to health in the 2027 national budget. The health allocation includes the recruitment of 3,125 frontline health workers, according to News Diggers.
The Constituency Development Fund (CDF), a funding mechanism for local projects, would receive 9 billion kwachas in 2027, compared with 6.2 billion in 2026. The allocation would remain at 40 million kwachas per constituency, according to News Diggers.
These measures are part of Zambia's 2027 budget proposal, presented after the approval of the 2027 budget proposal on 4 November. On 6 November, the government had announced a 2027 budget of 284.8 billion kwachas.
On X
2027 Budget Targets Economic Growth Through Increased Production
— ZNBC (@znbctoday) 6 novembre 2026
By Sharon Siame
Finance Minister SITUMBEKO MUSOKOTWANE says the proposed 2027 National Budget is anchored on the Grow Zambia Agenda, which seeks to double the size of the economy through increased production. pic.twitter.com/Ciha5AJrHn
