Proposal For An Upward Adjustment In Pay As You Earn Threshold Opposed
By Michael Kaluba
The Zambia Federation of Employers –ZFE- has opposed a proposal for an upward adjustment in the pay as you earn –PAYE- threshold from the current K4, 000 to K8,000 saying this will lead to loss of revenue on the part of the government.
Federation executive director Harrington Chibanda, however, proposes a reduction of the rate of PAYE which is currently at 25 percent, 30 percent, and 37.5 percent respectively as opposed to raising the threshold.
Mr. Chibanda is also proposing a reduction on corporate tax from 35 percent currently to at least 30 percent especially for manufacturers, as a form of relief against economic shocks and the disruption of covid-19 on business.
He explains that this will help businesses to save and have resources to expand their businesses thereby creating much-needed jobs for the youths.
Mr. Chibanda made these remarks in reaction to a recent request by the Zambia Congress of Trade Unions-ZCTU- for the government to consider increasing the pay as you earn threshold from K4,000 currently, to K8,000 to help workers overcome the negative effects of the economy.
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