On Monday, 28th October 2024, President Hakainde Hichilema convened the 20th Cabinet Meeting at State House, focusing on legislative matters related to the implementation of the 2025 National Budget. The primary goal was to deliberate on policy issues aimed at facilitating socio-economic development for the Zambian people. Several key decisions were made, highlighting the government’s commitment to improving the legislative framework and national policies.
Legislative Matters
Cabinet approved a series of bills for publication and introduction in Parliament during the current sitting:
- Income Tax (Amendment) Bill, 2024: This bill seeks to amend the Income Tax Act, allowing the deduction of the skills development levy as a tax-deductible expense in advance of its payment. It also aims to provide exemptions on withholding tax for royalties, waive penalties for underestimating provisional returns, and mandate agents to remit withheld tax timely.
- Value Added Tax (Amendment) Bill, 2024: The objective of this bill is to amend the Value Added Tax Act to establish conditions for exemptions for certain taxable suppliers from using the electronic invoicing system and to revise conditions for input tax claims.
- Customs and Excise (Amendment) Bill, 2024: This bill proposes revisions to the rates of customs and excise duties on certain goods and introduces a 10% excise duty on betting. It aims to optimize government revenue and support domestic industries.
- Mobile Money Transaction Levy Bill, 2024: The bill intends to provide a clear framework for the administration of mobile money operations and repeal the existing Mobile Money Transaction Levy Act, shifting administration to the Zambia Revenue Authority for improved levy collection.
- Zambia Revenue Authority (Amendment) Bill, 2024: This amendment aims to provide immunity to staff members of the Zambia Revenue Authority for actions taken in good faith while performing their duties.
- Property Transfer Tax (Amendment) Bill, 2024: The bill seeks to align the definition of intellectual property with other statutes and allow money-lenders and building societies to determine the realized value of foreclosed property based on the actual sale price.
- Insurance Premium Levy (Amendment) Bill, 2024: This amendment is designed to strengthen compliance in the Insurance Premium Levy Act by introducing an electronic invoicing system for better record-keeping and payment.
National Policies
In addition to legislative matters, Cabinet approved significant national policies:
- Revised State-Owned Enterprise Policy: This policy aims to strengthen governance and legal frameworks for State-Owned Enterprises (SOEs), addressing challenges like fiscal instability caused by SOEs’ reliance on Treasury support. The revised policy is expected to improve SOE performance and maximize public benefits.
- National Social Protection Policy: This policy is designed to ensure that social protection and security measures are accessible, adequate, and affordable for all citizens, particularly targeting informal and rural workers.
Ratification and Ministerial Meeting
Cabinet also ratified the Agreement on the Southern African Development Community (SADC) Regional Development Fund. This ratification is expected to enable Zambia and other SADC Member States to develop bankable projects for infrastructure financing, enhancing regional cooperation and addressing infrastructure deficits.
Additionally, Zambia will host the Twelfth Ministerial Meeting of the African Union Committee of Ten (C-10) on UN Security Council reform in Livingstone in January 2025. This meeting will reinforce Zambia’s role in advocating for African interests on the international stage.
Appointment of the Zambia Statistics Agency Board
Finally, Cabinet approved the appointment of a new nine-member Board of Directors for the Zambia Statistics Agency following the expiry of the previous board’s tenure. This board is crucial for providing strategic direction and governance for the Agency’s operations, ensuring effective statistical practices in Zambia.
President Hakainde Hichilema’s leadership during this Cabinet Meeting reflects a proactive approach to enhancing Zambia’s legislative framework and socio-economic development. The decisions made are poised to contribute significantly to the nation’s growth and the welfare of its citizens.
