APPENDIX TABLES Zambia WT/TPR/S/219 
 Page 89 
 
 
Table AI.1 
Merchandise exports by product group, 2002-08 
(US$ million and per cent) 
  2002 2003 2004 2005 2006 2007 2008 
Total exports (US$ million) 956.3 980. 4 1,575.6 1,809.8 3, 770.4 4,618. 6 4,808.1 
 (Per cent of total) 
Total primary products 77.8 79.2 73.8 82.3 90.3 86.9 87.0 
   Agriculture 14.6 15.7 25.3 18.8 8.8 8.6 7.1 
      Food 9.6 10.6 15.6 13.2 6.0 7.5 5.9 
         1211 Tobacco, not stemme d/stripped 1.3 0.9 1. 9 2.2 1.1 1.2 1.4 
 0611 Sugars, beet/cane, raw, solid, no added 
 flavour/colour 3.4 3.2 2.2 4.0 1.6 1.8 1.2 
         0449 Other maize, un milled 0.0 0.2 1.0 0.4 0.1 0.8 0.7 
         0461 Flour of wheat or of meslin 0.0 0.1 0.2 0.4 0.3 0.3 0.5 
         0546 Vegetables frozen 0.9 1.1 1.5 0.9 0.7 0.5 0.5 
         0441 Maize seed 0.2 0.5 1.7 0.5 0.2 0.5 0.3 
      Agricultural raw material 5.0 5.2 9.7 5.6 2.8 1.2 1.2 
 2631 Cotton (other than linters), not carded or 
 combed 1.7 2.5 7.8 3.2 1.6 0.9 0.7 
   Mining 63.2 63.5 48.4 63.5 81.6 78.2 79.9 
      Ores and other minerals 2.5 3.6 3.2 7.3 11.6 6.6 13.3 
         2831 Copper ores and concentrates 0.2 1.1 1.6 4.3 11.2 5.5 11.5 
 2881 Ash and residues (excl. iron/steel) of metals, 
 n.e.s. 0.0 0.0 0.0 0.1 0.1 0.4 0.6 
         2879 Other non-fe rrous base metals ores and  
  concentrates 0.1 0.1 0.3 0.4 0.1 0.2 0.5 
         2891 Ores and concentrates of precious metals 0.0 0.0 0.0 0.0 0.0 0.1 0.4 
      Non-ferrous metals 60.0 58.5 43.4 55.5 69.4 71.2 66.1 
         6821 Copper anodes; alloys ; unwrought 49.3 40.2 31.6 35.5 40.7 48.9 42.1 
         6825 Copper plates/sheets/strip, > 0.15 mm 0.0 7.1 8.4 15.4 24.1 17.9 20.7 
         6824 Copper wire 2.0 2.3 3.1 4.6 4.4 3.5 3.1 
      Fuels 0.8 1.4 1.8 0.7 0.6 0.5 0.6 
Manufactures 19.7 20.1 26.2 17.7 9.7 12.5 12.4 
   Iron and steel 0.2 0.3 0.1 0.1 0.1 0.1 0.2 
   Chemicals 1.2 1.0 2.6 0.8 0.6 1.7 1.4 
         5223 Inorganic acid and oxides 0.1 0.0 0.0 0.0 0.0 0.1 0.4 
   Other semi-manufactures 12.6 14.5 19.3 10.9 5.3 7.1 7.8 
 6998 Articles of cobalt/cadmium/titanium/zirconium, 
 n.e.s. 5.6 5.0 16.4 8.9 3.8 5.4 6.1 
 6673 Precious and semi-precious stones (excl. 
 diamonds) 4.9 7.7 1.7 1.2 0.6 0.8 0.6 
         6612 Portland cement and similar hydraulic cements 0.6 0.6 0.5 0.5 0.3 0.2 0.5 
   Machinery and transport equipment 0.9 0.8 1.1 1.3 2.8 2.3 2.5 
      Power generating machines 0.0 0.0 0.0 0.0 0.0 0.0 0.1 
      Other non-electrical machinery 0.1 0.1 0.2 0.2 1.5 0.6 0.8 
      Office machines & telecommunica tion equipment 0.0 0.0 0.0 0.0 0.1 0.1 0.0 
      Other electrical machines 0.8 0.6 0.7 0.9 1.1 1.1 1.2 
         7731 Insulated wire, cable etc.; optical fibre cables 0.7 0.5 0.7 0.9 0.9 0.9 1.1 
      Automotive products 0.0 0.2 0.1 0.1 0.1 0.3 0.3 
      Other transport equipment 0.0 0.0 0.0 0.0 0.1 0.2 0.1 
   Textiles 2.9 2.5 1.6 1.3 0. 6 0.6 0.2 
   Clothing 0.1 0.1 0.0 0.2 0.0 0.0 0.0 
   Other consumer goods 1.8 1.0 1.4 2.9 0.3 0.7 0.3 
Other 2.5 0.6 0.1 0.0 0.0 0.6 0.6 
   Gold 2.5 0.6 0.0 0.0 0.0 0.0 0.0 
Source : UNSD, Comtrade data base (SITC Rev.3). WT/TPR/S/219 Trade Policy Review 
Page 90 
 
 
Table AI.2 
Merchandise imports by product group, 2002-08 
(US$ million and per cent) 
  2002 2003 2004 2005 2006 2007 2008 
Total imports (US$ milli on) 1,102.5 1, 573.8 2,152.1 2, 558.0 3,074.3 3, 971.1 5,105.7 
 (Per cent of total) 
Total primary products 23.4 24.8 21.6 20.6 26.0 22.7 34.3 
   Agriculture 15.0 14.0 7.7 7.5 8.4 5.6 6.0 
      Food 13.1 12.7 6.6 6.2 7.6 5.2 5.5 
         4312 Fats/oils, partly or wholly hydrogenated, etc. 0.1 0.1 0.1 0.3 0.7 0.8 0.6 
      Agricultural raw material 1.9 1.2 1.1 1.3 0.8 0.4 0.4 
   Mining 8.4 10.9 13.9 13.1 17.6 17.1 28.3 
      Ores and other minerals 1.3 2.2 2.1 2.0 1.9 4.4 10.8 
         2831 Copper ores and concentrates 0.1 0.1 0.3 0.6 0.9 3.3 8.7 
         2741 Sulphur (excl. sublimed/pr ecipitated/colloidal) 0.6 0.5 0.8 0.7 0.7 0.8 1.6 
      Non-ferrous metals 0.5 0.4 0.4 0.6 0.5 0.4 0.4 
      Fuels 6.6 8.2 11.4 10.5 15.1 12.3 17.1 
 3330 Crude oils of petroleum and bituminous 
 minerals 0.0 2.6 6.2 4.0 7.6 5.8 9.4 
Manufactures 76.0 74.6 77.8 78.1 74.0 76.1 64.9 
   Iron and steel 3.3 4.0 4.4 3.7 4.3 5.0 4.0 
   Chemicals 16.5 18.5 16.1 17.7 14.6 13.6 14.7 
         5429 Medicaments, n.e.s. 0.0 0.0 0.0 0.0 0.0 1.3 2.6 
         5629 Fertilizers, n. e.s. 2.4 2.4 1.2 0.8 1.2 1.2 1.9 
         5621 Mineral or chemical fer tilizers, nitrogenous 1.8 1. 5 2.2 4.2 1. 6 1.4 1.4 
         5711 Polyethylene 0.8 1.0 1.1 1.0 0.7 0.8 0.7 
 5623 Mineral/chemical fertilizers (excl. crude natural 
 potassium salts) 0.1 0.3 0.4 0.6 0.3 0.3 0.7 
   Other semi-manufactures 8.1 8.8 7.6 9.2 8.1 9.3 8.0 
 6911 Iron or steel structures, tubes and the like, for 
 use in structures 0.4 0.5 1.2 1.0 0.9 2.4 1.6 
   Machinery and transport equipment 33.2 32.1 31.1 31.5 40.2 42.4 33.0 
      Power generating machines 0.9 1.4 1.4 1.1 1.2 1.6 1.8 
         7165 Generating sets 0.1 0.2 0.2 0.3 0.3 0.3 0.7 
      Other non-electrical machinery 13.4 14.0 14.5 13.9 19.5 22.5 15.3 
         7283 Other mineral working machines 1.2 0.9 1.4 0.9 5.5 4.9 2.2 
         7239 Parts n.e.s., of  machinery of 723 and 744.3 0.9 1.3 1.5 1.4 1.8 2.0 1.8 
         7232 Mechanical shovels, etc ., self-propelled 0.9 1.4 1.3 1.2 1.8 2.7 1.4 
         7272 Other food-processing machinery and parts 0.6 0.8 0.3 0.3 0.4 0.6 1.1 
         Agricultural machinery and tractors 1.0 1.7 1.3 1.0 0.6 0.6 0.6 
      Office machines & telecommunica tion equipment 4.0 4.5 3.2 4.6 4.3 3.0 2.8 
      Other electrical machines 4.7 4.2 3.7 3.2 4.2 4.9 3.9 
         7711 Transformers, electrical 0.7 0.5 0.4 0.4 0.5 0.7 0.7 
      Automotive products 8.5 6.2 7.1 7.3 9.6 8.9 8.1 
         7821 Goods vehicles 3.3 2.0 2.9 3.0 4.4 3.3 3.3 
 7812 Motor vehicles for the transport of persons, 
 n.e.s. 2.4 1.7 1.7 1.9 2.7 2.1 2.2 
 7843 Other motor vehicle parts and accessories of 
 722, 781 to 783 1.1 1.1 0.9 0.9 1.1 2.1 1.3 
      Other transport equipment 1.7 1.7 1.2 1.4 1.4 1.5 1.2 
   Textiles 1.6 2.2 1.7 1.3 1. 2 1.2 0.8 
   Clothing 1.0 0.8 0.8 0.8 0.5 0.5 0.4 
   Other consumer goods 12.3 8.2 16.2 13.9 5.1 4.0 3.9 
Other 0.6 0.6 0.7 1.3 0.0 1.3 0.9 
Source : UNSD, Comtrade database (SITC Rev. 3). 
 Zambia WT/TPR/S/219 
 Page 91 
 
 
Table AI.3 
Merchandise exports by destination, 2002-08 
(US$ million and per cent) 
  2002 2003 2004 2005 2006 2007 2008 
Total exports (US$ million) 956.3 980. 4 1,575.6 1,809.8 3, 770.4 4,618. 6 4,808.1 
 (Per cent of total) 
  America 1.1 1.3 1.3 0.8 0.1 0.6 0.5 
    United States 1.0 0.7 1.1 0.8 0.1 0.6 0.5 
    Other America 0.1 0.6 0.1 0.0 0.0 0.0 0.0 
  Europe 54.1 42.4 42.1 52.8 45.6 47.3 55.9 
    EC(27) 47.8 34.4 25.9 24.1 5.7 5.5 5.0 
      Netherlands 2.2 2.8 3.0 2.5 1.1 1.1 2.6 
      Belgium 1.9 2.8 2.3 1.7 0.3 1.0 1.1 
      United Kingdom 41.2 25.9 17.5 14.4 2.7 1.2 0.6 
    EFTA 6.2 8.0 16.2 28.7 39.8 41.8 50.9 
      Switzerland 6.1 7.8 16.2 28.7 39.8 41.8 50.9 
    Other Europe 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
  Commonwealth of Independent States  (CIS) 0.2 0.0 0.0 0.0 0.0 0.0 0.0 
  Africa 38.3 45.0 49.4 40.6 24.3 29.1 27.7 
      South Africa 22.5 21.6 24.4 18.6 11.0 12.0 9.7 
      Egypt 0.1 0.1 0.0 0.0 4.2 5.0 8.0 
      Zaire 4.1 4.2 6.7 5.4 3.6 5.3 5.3 
      Malawi 1.6 2.5 3.1 3.4 1.5 0.7 1.3 
      Zimbabwe 1.7 1.9 5.7 4.1 1.4 1.8 1.3 
      United Republic of Tanzania 6.0 12.5 7.7 5.1 0.5 2.1 0.6 
      Kenya 0.4 0.6 0.6 0.8 0.8 0.6 0.6 
      Mauritius 0.7 0.4 0.2 0.1 0.0 0.0 0.4 
  Middle East 0.6 1.0 0.2 0.1 4.6 5.8 3.3 
      Saudi Arabia 0.0 0.0 0.0 0.0 2.3 4.7 1.9 
      Kuwait 0.0 0.0 0.0 0.0 0.0 0.0 0.6 
      United Arab Emirates 0.5 0.7 0.1 0.0 2.3 1.1 0.4 
  Asia 5.7 10.4 7.0 5.7 25.4 17.3 12.6 
    China 0.4 1.7 2.2 2.1 6.8 4.1 6.0 
    Japan 0.8 1.7 0.4 1.6 0.1 0.8 0.9 
    Six East Asian Traders 1.1 3.4 3.1 0.3 13.3 10.2 4.4 
      Thailand 0.2 0.6 0.1 0.0 7.7 5.9 2.1 
      Korea, Rep. of 0.0 0.0 0.0 0.0 1.1 2.0 1.4 
      Chinese Taipei 0.0 0.2 2.8 0.1 2.0 0.9 0.5 
    Other Asia 3.4 3.6 1.3 1.5 5.2 2.2 1.4 
      India 3.1 3.5 1.1 1.4 3.6 1.1 0.7 
      Pakistan 0.0 0.0 0.0 0.0 1.3 1.1 0.6 
Source : UNSD, Comtra de database. WT/TPR/S/219 Trade Policy Review 
Page 92 
 
 
Table AI.4 
Merchandise imports by origin, 2002-08 
(US$ million and per cent) 
  2002 2003 2004 2005 2006 2007 2008 
Total imports (US$ milli on) 1,102.5 1, 573.8 2,152.1 2, 558.0 3,074.3 3, 971.1 5,105.7 
 (Per cent of total) 
  America 2.5 3.1 2.4 2.7 2.8 2.5 2.2 
    United States 1.4 2.1 1.6 1.6 1.9 1.6 1.5 
    Other America 1.1 1.0 0.8 1.1 0.9 0.9 0.8 
  Europe 15.1 14.9 24.1 23.2 17.0 17.4 10.7 
    EC(27) 14.7 14.1 23.1 22.4 12.2 16.8 9.8 
      United Kingdom 8.2 5.9 14.8 12.6 3.7 4.0 3.2 
      Germany 1.2 1.5 1.0 1.4 1.4 2.0 1.3 
      Sweden 0.5 0.6 0.9 1.4 1.9 2.2 0.9 
      Finland 0.6 1.7 1.1 0.5 0.4 1.4 0.9 
      France 1.1 1.9 3.3 3.5 0.7 2.9 0.8 
      Netherlands 0.6 0.7 0.5 1.2 1.5 1.9 0.6 
      Belgium 0.9 0.4 0.4 0.3 0.5 0.4 0.6 
    EFTA 0.4 0.8 0.9 0.7 4.8 0.6 0.9 
      Switzerland 0.3 0.7 0.8 0.6 0.8 0.5 0.8 
    Other Europe 0.0 0.0 0.0 0.0 0.1 0.0 0.1 
 Commonwealth of Independent States 
(CIS) 0.1 0.0 0.0 0.0 0.0 0.0 0.0 
  Africa 68.6 68.3 57.4 59.0 59.7 59.3 61.4 
      South Africa 55.3 48.7 46.2 47.6 47.1 47.4 44.6 
      Zaire 0.1 0.8 0.7 0.9 1.0 3.3 8.8 
      Zimbabwe 8.8 12.9 5.8 4.3 5.7 2.8 2.1 
      Kenya 1.0 1.5 1.6 1.5 1.8 2.0 1.6 
      Mozambique 0.3 0.7 0.1 0.4 0.5 1.4 1.2 
      United Republic of Tanzania 1.0 1.5 1.4 2.6 1.7 0.6 1.1 
      Botswana 0.4 0.4 0.4 0.4 0.6 0.6 0.6 
  Middle East 2.1 4.5 7.2 3.9 10.7 6.6 12.4 
      Kuwait 0.0 0.0 0.0 0.0 0.0 0.0 9.5 
      United Arab Emirates 1.6 4.3 6.8 3.7 10.4 6.4 2.7 
  Asia 11.6 9.2 8.9 11.2 9.8 14.1 13.2 
    China 2.6 2.7 2.1 3.3 2.7 5.9 4.4 
    Japan 2.8 1.5 1.3 1.6 1.5 1.3 1.5 
    Six East Asian Traders 1.7 2.1 1.9 1.9 1.7 1.7 2.0 
      Hong Kong, China 0.3 0.6 0.3 0.4 0.4 0.4 0.7 
    Other Asia 4.4 2.9 3.5 4.4 3.8 5.3 5.3 
      India 3.8 2.3 2.4 3.1 2.8 4.1 4.0 
      Australia 0.3 0.3 0.9 1.1 0.9 0.8 1.0 
Source:  UNSD, Comtrade database. 
 Zambia WT/TPR/S/219 
 Page 93 
 
 
Table AII.1 
Status of selected notifications to the WTO, September 2008 
WTO Agreement Requirement/Content Periodicity Most recent 
notification Comment 
Agreement on Agriculture     
Article 18.2 Domestic support Annual None  
Article 10 and 18.2 Export subsidies Annual G/AG/N/ZMB/5, 
13 February 2004 No export subsidies during 2002 
Agreement on Implementation of Article VI of the GATT 1994     
Article 18.5 Laws and Regulations Once, then 
changes None  
Article 16.4 Anti-dumping actions 
taken Semi-
annual None No anti-dumping actions during 
the preceding semi-annual period 
Article 16.5 Competent authority Once, then 
changes None  
Agreement on Rules of Origin     
Article 5 and Annex II.4 Preferential and non-
preferential rules of 
origin Upon entry 
into force None  
Agreement on Sanitary and Phytosanitary Measures     
Article 7, Annex B Acceptance of Code Once, then 
changes None  
Agreement on Safeguards      
Article 11.2 Safeguard actions taken Semi-
annual None  
Article 12.6 Laws and Regulations Once, then 
changes None No specific safeguard laws 
Article 12.7 Safeguard ac tions taken Annual None  
Agreement on Subsidies a nd Countervailing Measures    
Article 25.1, GATT 1994,  
Article XVI:1 Specific subsidies Annual None No notifiable subsidies 
Article 25.11 Countervailing actions 
taken Semi-
annual None No countervailing actions during 
the preceding semi-annual period 
Article 25.12 Competent authority Once, then 
changes None  
Article 32.6 Laws and Regulations Once, then 
changes None  
Agreement on Technical Barriers to Trade     
Articles 3.2 and 7.2   G/TBT/N/ZMB/40, 
22 October 2007 Notification of products 
Agreement on Import Licencing Procedures     
Article 1.4(a)  Laws and regulations  G/LIC/N/ZMB/2, 
18 February 2004 No import licencing procedures 
GATT 1994     
Article 17(4)(a) State trading activities Annual G/STR/N/9/ZMB, 
13 February 2004 No state trading enterprises in 
accordance with working 
definition contained in para. 1  
Article VII – 20.1 Delayed 
implementation of the 
Customs Valuation 
Agreement Once, then 
changes None  
Article VII – 22.2 Laws and regulations Once, then 
changes None  
Table AII.1 (cont'd) WT/TPR/S/219 Trade Policy Review 
Page 94 
 
 
WTO Agreement Requirement/Content Periodicity Most recent 
notification Comment 
Article XVII.4(a) State trading  None  
ArticleXVII.4(a) State Trading  None  
Decision on notification proce dures for quantitative restrictions    
 Non-tariff measures Every two 
years None  
GATS     
Article III:4 Enquiry points Once, then 
changes None  
Agreement on Trade-Relate d Investment Measures   
Article 5.1 Inconsistent TRIMs 
taken Upon entry 
into force, 
then changes None  
Agreement on Trade-Related Aspects of Intellectual Property Rights  
Articles 1.3 and 3.1 National treatment Once, then 
changes None  
Article 9.1 Relation to the Berne 
Convention Once, then 
changes None  
Article 4d MFN treatment Once, then 
changes None  
Article 63.2 Laws and Regulations Once, then 
changes None  
Article 69 Enquiry points Once, then 
changes None  
Source:  WTO documents. Zambia WT/TPR/S/219 
 Page 95 
 
 
Table AIII.1 
Summary of the tax system, October 2007 
 Tax  Name of tax  Exemptions and deductionsa Product/Category  Rate  
1  Taxes on 
international trade     
1.1  Customs and tariff  Ad valorem  
customs tariffs on 
the c.i.f. value of 
imports Goods originating in the Common 
Market for Eastern and Southern 
Africa countries come in duty free on 
reciprocal basis  0, 5, 15 and 
25%  
2  Taxes on goods and 
services     
2.1  Valued Added Tax 
(VAT Act Cap. 331 
of the Laws of 
Zambia) Multistage tax on 
the value added Unprocessed agricultural, animal and 
dairy products, fish, livestock, infant 
foods, fertilizers, pesticides, books, 
educational material, health care expenditure, and financial and 
insurance services, water and 
sewerage services, and residential rents, domestic kerosene, interest 
component of finance leases are 
exempt  
Tourist activities, exports, supplies to 
privileged persons, medical supplies & drugs, mosquito net raw materials and hotel accommodation in 
Livingstone District are zero rated 
 Deferment of capital goods only  17.5%  
2.2  Excise taxes 
(Customs and Excise Act Cap. 322 of the 
Laws of Zambia) A tax levied on 
products in second schedule 
of the act Purchases by diplomats  145% or 
K 90,000 per mile 
whichever is 
greater 
2.2.1  Tobacco and tobacco 
products Ad valorem  
excise  Purchases by diplomats    
2.2.2  Alcoholic beverages  Ad valorem  
excise  Fermented liquor, other than opaque 
beer, containing beer, containing more 
than 3% of proof spirits when for own 
use and not for sale  
Sales to the military Clear beer, ale, and 
stout  
Wine 
Opaque beer Spirits, liquor 75% 
 
125% 
35% 125% 
2.2.3  Hydrocarbon oils  Ad valorem  
excise  Embassies and approved foreign 
organizations are exempt  Petrol  
Diesel 
Kerosene 
- Household use - Industrial use 
Light oil 
Fuel oil Gases and other 
gaseous 
Hydrocarbons 45% 
15% 
 
15% 30% 
15% 
15% 15% 
 
20% 
2.2.4  Motor vehicles for 
transportation of 
people under 
HS 8703 Ad valorem  
excise   Motor vehicles  20-30% 
2.2.5  Mineral water & soft 
drinks  Ad valorem  
excise    10% 
2.2.6  Fuel levy  Specific on 
gasoline applied 
on wholesale Sales to the military   15% 
2.2.7 Carbon tax     K 50,000-
K 200,000 
per annum 
Table AIII.1 (cont'd) WT/TPR/S/219 Trade Policy Review 
Page 96 
 
 
 Tax  Name of tax  Exemptions and deductionsa Product/Category  Rate  
2.2.8 Telecommunication 
services-mobile 
phone airtime    10% 
3  Taxes on income 
and profits     
3.1  Corporate profit tax  A flat rate on 
profits of 
corporations; profits are defined 
as revenues 
minus depreciation, 
production costs 
and wages: Fringe benefits 
paid are non 
deducted As of 1 April 1997 losses may be 
carried forward for up to 5 years only, 
except for KCM who have a 20-year carry-forward and all other Mining 
Companies holding Large Scale 
mining licence & mining Base Metals have 10 years General  
 
New listing on the Lusaka Stock 
Exchange more than 
33% shares taken by Zambians  35%  
 
7% discount, available for 
one year only  
   Initial and wear and tear allowances:    
   - Initial allowance industrial 
building – 10% 
- Industrial building – 5% .  
- Industrial buildings (low cost 
housing) – 10% 
- Commercial building – 2% - Vehicles other than commercial 
vehicles – 20% 
- Plant, implements or machinery 
used exclusively and direct in 
farming – 50% 
- Plants, machinery, implements in 
leasing, manufacturing, tourism – 
50% 
- Farm improvement allowance – 
100% 
- Farm works allowance – 100% 
- Development allowance – 10% - Capital expenditure for 
prospecting & exploration, mining 
companies – 100% Other new listings 
  
 
Profits of banks above K 250 million   
Profits from 
agriculture, non-traditional exports, and 
chemical fertilizer 
 Mining companies 
holding large scale 
mining licence & mining base metals 2% discount, 
available for one year only 
 
40%   
15% 
  
 
 30% 
   - Implements, machinery & plants 
including commercial vehicles 
(other than those listed above) – 25%   
   All prospecting and exploration 
expenditures for mining companies are deductible immediately 
 
Deductions of K 500,000 for each handicapped employee 
 
Organizations whose income is exempt from tax under the Income Tax Act Companies registered 
under Zambia Development Agency 
(ZDA) operating in 
priority sectors  - 0% for 
5 years from first year 
profits are 
made 
- 50% of 
profits for 
years 6 to 8 
- 75% of 
profits for 
years 9 to 10 
    Presumptive tax on 
small business with 
turnover below 
K 200 million per annum 3% 
    Foreign earnings of 
Sun International Limited  15% 
Table AIII.1 (cont'd) Zambia WT/TPR/S/219 
 Page 97 
 
 
 Tax  Name of tax  Exemptions and deductionsa Product/Category  Rate  
    Rural Enterprises  Tax reduced 
by one-
seventh for a period of 
five years 
    Advance tax on 
commercial imports 
for unregistered tax payers 3% 
3.2  Personal income tax  A 'progressive' 
tax on global personal income 
(tax on salaries is 
withheld at source under the pay-as-
you-earn system 
 Withholding tax 
on income Income paid into pension funds up to 
K 1,620,000 per annum  
Contributions to charitable 
organizations deductible up to 15% of taxable income 
 
Lump sum payments made to an employee on loss of employment on 
medical grounds 
 Portion of terminal benefits up to K 20 million 
 
Persons with disabilities have a tax credit of K 72,000 per annum 
 
Dividend income earned by individuals on shares listed on the 
Lusaka Stock Exchange is exempt Taxable income 
  
 
First K 6, 000,000  
K 6,000,001-
K 14,400,000  
K 14,000,001-
K 62,400,000  Over K 62,400,000  
  
 
0%  
25% 
  
30% 
  35% 
3.3  Withholding tax on 
capital income  Tax withheld at source for 
interest, 
dividends, royalties, 
commissions, 
management and consultancy fees 
and rents Bank interest to individuals not 
exceeding K 750,000 per annum  
 
Withholding tax on dividend, interest, royalties, or management fees paid to 
shareholders or a ffiliates by mining 
companies holding large scale mining licence & mining base metals with 
development agreements rate is 
generally 0% Individuals  
 
 
Other persons (General) 
 
Dividends declared by companies operating 
under priority sector 
under ZDA 25% (final 
tax) 
 
15%  
 
0% for a period of 
5 years from 
year of first declaration 
3.4  Mineral royalty levy 
(Mines and Mineral Act of 1997) Royalty levied on 
gross value of the resource The Minister of Finance can exempt 
companies from payment  
Mining companies holding large scale 
mining licence & mining base metals with development agreements 
generally liable to reduced rate at 
0.6% of gross value Product 
  
Base metals 
Precious metals Industrial minerals 
Gemstones  
  
3% 
5% 2% 
2% 
4  Taxes on property     
4.1  Property transfer tax  Levied upon the 
selling price of 
transferred property and 
shares Cooperative societies, charitable 
organizations approved under the 
Income Tax Act and shares listed on the Lusaka Stock Exchange are 
exempt. Zambia Venture Capital Fund 
is exempt for any transfer of shares  3% 
4.2  Property tax  Specific tax 
levied by local 
authorities   Varies across 
districts 
a The Minister of Finance and National Planning has power to grant exemptions under the Customs and Excise, Income Tax, and 
Value-Added Tax Act. 
Source: IMF (2008), IMF Country Report No. 08/30,  Zambia - Statistical Appendix,  Appendix III, pp. 41-44, January.  Viewed at:  
http://www.imf.org/external/ pubs/ft/scr/2008/cr0830.pdf. 
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