Report
Hepta Advisory's proposals for Zambia's 2027 National Budget: nine targeted reforms to the VAT, Income Tax and Property Transfer Tax Acts that remove distortions, improve competitiveness and support investment while protecting the long-term tax base.
This submission sets out a consolidated set of tax and regulatory reform proposals for Zambia's 2027 National Budget. Each proposal identifies the current challenge, the recommended reform, the expected economic impact and the key implementation safeguards.
On VAT, it recommends better treatment of carbon credits, business process outsourcing, ancillary services for goods in transit and imported machinery, removing unrecoverable VAT costs that weaken export competitiveness and green investment. On Income Tax, it proposes modernising research and development incentives, clarifying the treatment of foreign currency movements and rationalising the deductibility of finance costs. It also addresses charitable donations and corrects a drafting inconsistency affecting intra-group transfers under the Property Transfer Tax Act.
The proposals are designed to be fiscally responsible and administratively workable, strengthening future tax collections through growth rather than distortionary tax costs.
Report
October 7, 2026 · 26 pages · 685 KB
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