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The Tobacco Free Association of Zambia has called on the government to double taxes on tobacco products, arguing that a 100 percent increase would help discourage usage and generate critical funding for the health sector.
This comes in the wake of recent tax hikes on several products, including alcohol, tobacco, and betting services, under the K33.6 billion supplementary budget aimed at raising domestic revenue without additional borrowing.
Under the new measures, the tax on cigarettes has risen from K452 to K750 per 1,000 sticks.
However, Association Executive Director Brenda Chitindi told Zambia Monitor in an Interview that the adjustment was insufficient to address the severe health risks associated with tobacco use.
“Tobacco smoking remains a leading risk factor for non-communicable diseases (NCDs), which are both prevalent and costly to treat in Zambia,” Chitindi said.
She emphasized that further increasing taxes on tobacco would not only discourage smoking but also provide more revenue to make medications for NCDs more accessible and affordable to patients.
“The government must prioritize public health over the interests of the tobacco industry. I urge the Minister of Finance to go back to the table and relook at tobacco taxes—these must be increased by 100%,” Chitindi stated.
She stressed the importance of promoting healthy lifestyles and eliminating products that cause disease and long-term health complications.
Chitindi reiterated her appeal for a substantial tax hike, noting that the burden on Zambia’s healthcare system—particularly at institutions like the National Heart Hospital and the University Teaching Hospital’s Cardiac Unit—was overwhelming.
“A few individuals can afford treatment abroad, but what about those who can’t?” she asked, highlighting the disproportionate impact on the most vulnerable.
She added that tobacco use also contributes to mental health problems, further burdening a fragile healthcare system.
“Statistics are there for everyone to see—tobacco not only damages physical health but also worsens mental health conditions in our country,” Chitindi said.
Meanwhile, the Consumer Unity and Trust Society (CUTS) International Lusaka has expressed concern over the government’s new tax proposals, urging authorities to protect consumers and support local manufacturers.
While acknowledging government efforts to enhance domestic resource mobilization—reflected in the K33.6 billion Supplementary Budget presented by Finance and National Planning Minister Dr. Situmbeko Musokotwane—CUTS cautioned that certain tax measures could have unintended economic consequences.
In a statement issued in Lusaka on Friday, CUTS Communications Officer, Nancy Mwape, said the Centre was particularly concerned about the proposed increases in excise duties, including a rise from 60 percent to 80 percent on spirits and wines, the reintroduction of a 50 percent duty on clear alcohol, and the doubling of excise duty on sugary drinks.
Mwape stated that while CUTS supports the broader goal of reducing debt dependency and enhancing fiscal prudence, the timing and design of the tax measures risked hurting consumers and local manufacturers, especially small and medium-sized enterprises (SMEs).
“Local producers are already grappling with high energy costs, limited access to affordable credit, a depreciating currency, and intense competition from regional imports,” she noted.
She warned that without adequate safeguards, the proposed taxes could lead to higher production costs, increased prices for consumers, job losses, and even the closure of some local businesses.
Mwape said such outcomes would undermine Zambia’s industrialization agenda, discourage investment, and slow efforts to promote value addition and job creation, particularly for young people.
To cushion the impact, CUTS proposed differentiated tax treatment and transitional support measures for SMEs to ensure their growth and survival.
She also suggested incentives for companies producing healthy, locally processed food and beverages using traditional Zambian crops such as millet, sorghum, and groundnuts.
Mwape called for increased support for local agro-processing, along with public nutrition education campaigns to promote sustainable diets and healthier consumption habits.
“While public health concerns are valid, taxing sugar-laden drinks and alcohol should be complemented by practical, affordable alternatives accessible to all Zambians,” she said.
She warned that a tax policy that is not inclusive or evidence-based could widen inequality and slow economic recovery.
Mwape urged the Ministry of Finance and National Planning and Parliament’s Expanded Planning and Budgeting Committee to implement tax changes gradually, with targeted relief for local manufacturers and competitiveness-enhancing policies.
She also emphasized the need for transparency and public oversight in how the additional tax revenue is allocated, particularly in the health, education, and agriculture sectors.
“CUTS remains committed to engaging with government and stakeholders to ensure that tax reforms strike the right balance between revenue generation, economic growth, and protection of consumers and small businesses,” Mwape said.
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