On what basis does the Zambian state levy tariffs

The Ministry of Finance and National Planning of Zambia is responsible for the formulation of national tax policy, in accordance with the needs of macroeconomic development, and make certain adjustments to the tax rate standard every year. Zambia National Revenue Authority (Zambia Revenue Authority, abbreviated as ZRA) is the government's competent authority to manage and collect all types of taxes (including customs duties). The main types of taxes include direct taxes such as corporate and personal income, dividends and interest, value-added tax (VAT), mineral royalty tax and property transfer tax.

The main taxes and tax rates are as follows:

(a) Corporate and personal income tax. Zambia has a flat corporate income tax at a rate of 35%, payable annually. Personal income tax is progressive with rates ranging from 10-30%. Of this, 35% income tax is levied on the portion of annual income exceeding K62.4 million.

(ii) Income tax on banking and finance. The tax rate is 35-45%.

(iii) Other taxes and rates. Withholding Tax (Withholding Tax), dividends and rents etc. are taxed at 15% and interest tax is 25%. Value Added Tax (VAT): the current rate is 16%. Agricultural products are exempt from VAT. Medical devices, equipment and medicines are exempt from VAT. Mineral Royalty: 3%. Property Transfer Tax: 3%.