The Zambia Association of Manufacturers (ZAM) has warned that the proposed 80 Ngwee levy on plastic bottles could increase the cost of locally manufactured mineral water by as much as 25 percent, raising concerns about the competitiveness of domestic producers and the potential impact on consumers.
ZAM President Mohammed Umar says while manufacturers appreciate government’s efforts to protect the environment and mobilise revenue, the proposed levy could place a significant cost burden on local industries, particularly when competing with imported products.
Mr Umar has also called for a review of the proposed 0.5 percent VAT increase, warning that its cascading effect across the manufacturing value chain could translate into an estimated 3 percent increase in prices.
On manufacturing inputs, Mr Umar has urged government to restore full duty relief under Statutory Instrument Number 110 of 2020, which provides for the suspension of customs duty on imported raw materials and other production inputs unavailable locally.
He says the subsequent amendment under SI 76 of 2025, which limited duty suspension to 50 percent of the applicable customs duty rate, has increased the cost of importing essential manufacturing inputs and weakened the competitiveness of local industries.
Mr Umar has further raised concerns over the proposed increase in export corporation tax, arguing that higher taxation could discourage manufacturers from expanding into regional and international markets. He has also called for special tax exemptions on energy equipment to encourage investment in cleaner and more efficient energy solutions.
Meanwhile, ZAM has welcomed the 2027 National Budget’s focus on local value addition, protection of selected domestic industries and support for micro, small and medium enterprises, but says effective implementation of these measures will be critical to growing manufacturing and creating jobs.
By Rachel Mumba
