Insights on Zambia's 2026 National Budget: Key Business Implications

2026 Budget Brief for SMEs & Businesses Headline: 📌 “Tighter discipline, more opportunities, stricter compliance.” Key Business Implications Tax Regime for SMEs: – Turnover Tax continues (for firms ≤ K5m turnover). – Base rate 5%. Simpler admin, but stricter enforcement. Compliance: – ZRA will now share unresolved tax debts with credit bureaus. – Late filings & arrears may affect your credit profile. Borrowing & Investment Climate: – Govt targets deficit of 2.1% GDP. – If achieved, expect slightly lower lending rates and improved investor confidence. Sector Opportunities: – Agriculture: bigger FISP = higher rural demand for inputs & services. – FMCG: SCT increases household purchasing power. – Energy: incentives for power investments – opportunities in supply, renewables, and efficiency. What You Should Do ✔ Decide if Turnover Tax (≤ K5m) or Standard Tax+VAT suits you better. ✔ Keep books clean; avoid arrears that trigger credit-bureau reporting. ✔ Explore opportunities in agri-inputs, rural retail, and energy solutions. ✔ Monitor lending rates – 2026 may be a good year to finance expansion.