ZANEC 2025 PRE-BUDGET PRESS STATEMENT ON THE EDUCATION AND SKILLS SECTOR

ZANEC 2025 PRE-BUDGET PRESS STATEMENT ON THE EDUCATION AND SKILLS  SECTOR

The Zambia National Education Coalition (ZANEC) is pleased that the 2025 National Budget will be presented by the Minister of Finance Hon. Dr. Situmbeko Musokotwane (MP) on Friday 27th September 2024.  It is in this vein that we would like to highlight our expectations on the  2025 national budget detailed in this statement which were also submitted to the Ministry of Finance and National Planning.

Specifically, our expectations on the revenue side of the budget are as follows:

  1. Introduce an Education Levy that can help with resource generation for the education sector.
  2. Ease the logistical burden of tax compliance for Micro, Small and Medium Enterprises (MSMEs). Through the use of innovative low-cost solutions that can enhance tax compliance.
  3. There is need to improve awareness of the tax system and contributions from the informal sector including the Small and Medium Enterprises.
  4. The Government should remove the deductable mineral royalty for corporate income tax assessment purposes to mitigate the current loss of an estimated K3.2 billion which can be redirected towards the education sector.
  5. The PAYE tax bands should be adjusted to introduce additional brackets for more progressive taxation: This proposal considers the high cost of living in the country, with inflation at 15.5% as of August 2024. Additionally, the Jesuit Centre for Theological Reflection (JCTR) reports that the Basic Needs and Nutrition Basket (BNNB) for August in Lusaka rose to K10,669.33, for a family of five.
  6. Reduce FISP expenditure by 50% and redirect the funds towards empowering Zambia National Service (ZNS) among others to increase their production of maize.
  7. Reduce VAT from 16% to 13% and increase non-refundable taxes. The ZRA continues to face challenges due to the inability to trace back the transactions of claimed input VAT (refund VAT) filed by buyers due to the size or formality of suppliers.

Expectations on the expenditure side of the budget are as follows.

  1. It is imperative to devote a minimum of 20% of the national budget towards the Education sector. This will aid in achieving Sustainable Development Goal (SDG) 4 and commitments made during the Transforming Education Summit (TES) 2022, which are essential for the attainment of equitable and quality education for all.
  2. Ensure that at least 10% of the total number of teachers deployed annually should be Early Childhood Education (ECE) teachers and caregivers.
  3. Increase allocation for ECE grants from 2.28% to 4% in the 2025 budget. The current allocation per school is not adequate.
  4. Provide for construction of more infrastructure for secondary schools; Boarding facilities and teachers’ houses to address the challenges of inadequate secondary, boarding schools and decent houses for teachers.
  5. Increase the allocation to the skills and tertiary sector from 8.7% in 2024 to 12% of the total education budget in 2025.
  6. Increase the percentage allocation to Youth Adult Literacy and Education (YALE) to at least 2% from the current 0.2% of the total Education budget which has remained constant for 3 years. This will help operationalise the YALE Policy; employ specialised adult learning instructors; conduct sensitisation on YALE lessons; provide more teaching and learning materials, provide appropriate skills training.
  7. Allocate resources aimed at promoting inclusive education to help promote access to education for learners with disabilities and learners with special education needs.

I thank you.

For/ZANEC

George Hamusunga

EXECUTIVE DIRECTOR

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