The Zambian government is considering the implementation of a tax on mobile money transactions.
This proposed tax is specifically targeted at person-to-person transactions and ranges from 8 ngwee ($0.0038) to 1.80 kwacha ($0.085), depending on the transaction's value.
Felix Mutati, minister of technology and science, noted that mobile money transactions in Zambia surged to 170 billion kwachas ($8 billion) in 2022, from 95 billion kwachas in 2021. Moreover, the government's rationale for this new tax is to ensure that every individual contributes, even if it's a small amount, towards the funding of public services. However, many in the industry anticipate negative repercussions, particularly within the informal sector.
Postle Jumbe, president of the Alliance of Zambia Informal Economy Association (AZIEA), stated that imposing a tax on mobile money means people will be paying more.
In recent years, Zambia has witnessed a rapid digital transformation, marked by the swift adoption of digital payment solutions.