On Friday, 27 September, 2019, the Minister of Finance, Honourable Dr. Bwalya Ng’andu, MP, presented the 2020 National Budget to the National Assembly of Zambia. The theme of the budget is “Focusing national priorities towards stimulating the domestic economy”. In this budget the Minister highlighted among other things, some tax incentives and sources of revenue for the year 2020. Among the tax incentives, he proposed the suspension of import duty, for three years, on the importation of machinery for processing of solid waste to generate electricity and produce organic fertilizers as well as on selected aqua culture equipment. The Minister did not propose any changes to the Pay As You Earn (PAYE) tax which remains as follows: Annual Income (K) Tax Rate (%) First 39,600 0 39,6001 – 49,200 25 49, 201 – 74, 400 30 Above 74, 401 37.5 Briefly discuss the effect of the two tax incentives highlighted in the statement above Briefly explain the various effects of the PAYE on the ability to save and invest. Briefly discuss the equity aspect of PAYE in Zambia
On Friday, 27 September, 2019, the Minister of Finance, Honourable Dr. Bwalya Ng’andu, MP, presented the 2020 National Budget to the National Assembly of Zambia. The theme of the budget is “Focusing national priorities towards stimulating the domestic economy”. In this budget the Minister highlighted among other things, some tax incentives and sources of revenue for the year 2020. Among the tax incentives, he proposed the suspension of import duty, for three years, on the importation of machinery for processing of solid waste to generate electricity and produce organic fertilizers as well as on selected aqua culture equipment. The Minister did not propose any changes to the Pay As You Earn (PAYE) tax which remains as follows: Annual Income (K) Tax Rate (%) First 39,600 0 39,6001 – 49,200 25 49, 201 – 74, 400 30 Above 74, 401 37.5 Briefly discuss the effect of the two tax incentives highlighted in the statement above Briefly explain the various effects of the PAYE on the ability to save and invest. Briefly discuss the equity aspect of PAYE in Zambia
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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On Friday, 27 September, 2019, the Minister of Finance, Honourable Dr. Bwalya Ng’andu, MP, presented the 2020 National Budget to the National Assembly of Zambia. The theme of the budget is “Focusing national priorities towards stimulating the domestic economy”. In this budget the Minister highlighted among other things, some tax incentives and sources of revenue for the year 2020. Among the tax incentives, he proposed the suspension of import duty, for three years, on the importation of machinery for processing of solid waste to generate electricity and produce organic fertilizers as well as on selected aqua culture equipment. The Minister did not propose any changes to the Pay As You Earn (PAYE) tax which remains as follows:
|
Annual Income (K) |
Tax Rate (%) |
|
First 39,600 |
0 |
|
39,6001 – 49,200 |
25 |
|
49, 201 – 74, 400 |
30 |
|
Above 74, 401 |
37.5 |
- Briefly discuss the effect of the two tax incentives highlighted in the statement above
- Briefly explain the various effects of the PAYE on the ability to save and invest.
- Briefly discuss the equity aspect of PAYE in Zambia
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