02 November 2023

The government of Zambia is now considering introducing a tax on mobile money transactions, according to Situmbeko Musokotwane, the country’s minister of finance and national planning.

The proposed tax applies exclusively to person-to-person transactions. It ranges from 8 ngwee to 1.80 kwacha, depending on the value of the transaction.

According to Felix Mutati, minister of technology and science, mobile money transactions in Zambia reached 170 billion kwacha in 2022, up from 95 billion kwacha in 2021.

Through this tax, the government wants to ensure that everyone contributes to the provision of public services.

“Introducing a tax on mobile money will mean people will pay more. For those on lower incomes, every ngwee counts, a lot of explanation is needed,” said Postle Jumbe, president of the Alliance of Zambia Informal Economy Association (AZIEA).