The Civil Society Organisations (CSOs) have urged government to adopt aggressive inflation control measures, which should include a stronger focus on domestic production capacity and reduced dependence on imports, in the year 2025.
This is contained in a Pre-Budget Expectations Press Release issued today, signed by Council Churches of Zambia, Civil Society for Poverty Reduction, Consumer Unity and Trust Society, Jesuit Centre for Theological Reflection and Publish What You Pay.
“Strategic investments in growth sectors such as manufacturing, agriculture, and energy are essential,” read the statement by the CSOs.
And the CSOs said the 2025 budget must prioritise reducing the debt service ratio, reducing arrears, strengthening debt oversight, and boosting domestic resource mobilisation to lessen reliance on external borrowing.
They however commended government’s progress in external debt restructuring and the dismantling of domestic fuel arrears, despite the persisting US$16.56 billion in external debt and ZMK 225.5 billion in domestic debt.
Meanwhile, the CSOs have proposed adjustments to Pay As You Earn tax bands to create a more progressive system, with incomes up to K5,100 remaining untaxed and higher incomes taxed at adjusted rates.
They said government should consider reducing the highest tax rate to 36%.
By Eva Hatontola
