Government's Economic Policies Drive Tax Revenue to Historic 16% of GDP

The Government has achieved a significant economic milestone, with tax revenues reaching an impressive 16 percent of Gross Domestic Product (GDP), according to new data from the United Nations Development Programme (UNDP).

This achievement represents a substantial improvement in the country's domestic resource mobilization capabilities, demonstrating the effectiveness of government fiscal policies and economic management strategies implemented over recent years.

UNDP Resident Representative Dr. James Wakiaga commended the government's progress, noting that this increase in tax revenue collection reflects strengthened institutional capacity and improved tax administration systems under the current administration.

"Zambia has made notable progress in domestic resource mobilization," Dr. Wakiaga said during the launch of the KPMG–UNDP pre-budget survey report in Lusaka. "This achievement shows the government's commitment to building a more self-reliant economy."

The improved tax collection comes at a critical time as the government prepares for the 2026 National Budget, which presents an opportunity to further strengthen domestic financing mechanisms. Government officials emphasized that the increased revenue base will enable more sustainable funding for development programs and reduce dependency on external assistance.

Ministry of Finance and National Planning Director of Economic Management Imwiko Akapelwa highlighted the administration's successful economic stewardship, stating that "Zambia's economy is on the right track, supported by predictable policies that enable private sector planning."

The government's focus on creating a stable policy environment has provided businesses with the confidence needed for long-term planning and investment, contributing to the overall improvement in tax revenue collection.

While acknowledging ongoing challenges including currency fluctuations and inflation pressures identified in the KPMG report, government officials remain optimistic about the country's economic trajectory. The administration continues to implement measures aimed at maintaining fiscal stability while promoting economic growth.

The 16 percent tax-to-GDP ratio represents a foundation upon which the government can build more robust public financing mechanisms, ensuring sustainable development funding while reducing reliance on external borrowing.

This achievement underscores the government's commitment to prudent economic management and its success in creating an environment conducive to improved revenue generation, positioning Zambia for continued economic progress.