Question

Review the sectoral study of the Zambian effective tax burden from this week. In particular focus on Analysis of the Effective Tax Burden in Zambia section E regarding a comparison with neighboring countries: South Africa, Malawi, Tanzania, and Zimbabwe. Based on that section which country do you think has the best tax system out of the four and which one has the worst? State your reasons for each and provide support. Also, discuss if there are aspects about any of those countries' tax systems that you feel that Zambia should adopt.

Answer 1

The situation is worsening including in Malawi and Zimbabwe and there are reports of farmer suicides in South Africa.

COMPARISON OF TAX BURDEN OF NEIGHBORING COUNTRY

Country	Corporate tax (excluding dividend taxes	Income tax(lowest marginal rate)	Income tax(highest marginal rate)	VAT or GST or sales tax	Further reading
South Africa	28%	0%(below threshold)	45%	15%	Taxation in south Africa
Malawi	N/A	N/A	N/A	N/A	Taxation in Malawi
Tanzania	30%	15%	30%	18%	Taxation in Tanzania
Zimbabwe	25%	0%	45%	15%standard rate	Taxation on Zimbabwe

Zambia has the highest tax liability in comparison to other countries mentioned above.