Zambia presents a K284.8 billion budget for 2027 and targets a 3.0% deficit

Finance minister Situmbeko Musokotwane presented a 2027 budget of K284.8 billion, up from K253 billion, with a fiscal deficit target of no more than 3.0% of GDP against 5.9% this year. He proposed raising VAT from 16% to 16.5%, a 39.5% PAYE rate on monthly income above K37,000 and higher taxes on sugar, imported tiles and mobile money transactions. Education gets K38.2 billion and health K30.3 billion, and he pledged a stable fiscal regime for mining.

Why it matters

Businesses face higher consumption and transaction taxes as Zambia tightens its finances under a new IMF programme.

Sources: Business Day (Reuters), News Diggers · 6 November 2026

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