By KETRA KALUNGA
PAY As You Earn (PAYE) of 37.5 percent on an income of over K6, 900 should have been reduced in the 2022 national budget because it’s too high given the cost of living, the Zambia Congress of Trade Union (ZCTU) has said. ZCTU general secretary, Comas Mukuka said reducing the PAYE would enable the government to capture a lot of people.
He said this would also encourage tax compliance in the current form, tax is very discouraging. “The tax bands are very discouraging, if we can reduce these bigger percentages, in my view, we can bring a lot more people on PAYE. “25% on an income of over K4 000 if that can go down to even 15%, and where there is 30 percent if that one can go down to even 15, where it’s 37.5%, if that one can go down to even 25,” he said.
Mr. Mukuka said PAYE should be relaxed so that statutory obligations are paid promptly. Meanwhile, the Zambia Federation of Employers (ZFE) says the raised exempt threshold from K4 000 to K4 500 in the budget is a relief to workers as it would increase the net pay. Executive director Harrington Chibanda said in an interview that although the increase is not much, it would make a difference in improving the living conditions of the workers.
“You need to look at it that the government is trying to improve the economic status of this country which will lead to the economic development of its citizens,” he said
