Alliance of Zambia Informal Economy Association (AZIEA ) says the introduction mobile money levy would have detrimental effects on the informal sector.
AZIEA president, Postle Jumbe, said more explanation was needed to allay fears as few subscribers trust mobile operators.
“The introduction of levy on mobile money will mean people will be paying more. For those with lower incomes, every ngwee counts, a lot of explaining is needed,” Jumbe said in an interview with Zambia Monitor on Monday.
He observed that while it was understandable that the government needs money to provide social services, there was need to shed some light so that subscribers know how the money would be levied on transactions.
Finance and National Development Minister, Situmbeko Musokotwane, on Friday during the unveiling of the 2024 budget announced the introduction of levy on mobile money transactions.
Musokotwane proposed the fee structure of between K1 to K150; 0.08 Ngwee. Above K150 to K300; 0.10 Ngwee. Above K300 to K500; 0.20 Ngwee. And above K500 to K1,000; 0.50 Ngwee.
The other range was above K1,000 to K3,000, 0.80; above K3,000 to K5,000, K1.00; above K5000 to K10,000; K1.50 and above K10,000, K1.8.
On Pay-As-You-Earn (PAYE ) exempt threshold which has moved to K5,100 from K4,800, he said despite the threshold being minimal, it would help unlock liquidity in the economy.
“We expect the informal sector to benefit from the change in exempt threshold in that the workers will have disposal incomes that will be used to buy from those in informal sector,” Jumbe said.
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