FALSE: Hakainde Hichilema (HH) did not unilaterally introduce the Minimum Alternative Tax, to be imposed on all poor Zambians before selling anything, even at a loss.
The claim falsely claims that MAT was enacted by Parliament under the Income Tax (Amendment) Act No. 10 of 2025, not unilaterally by the President.It falsely claims that all poor Zambians must pay it before selling anything (MAT applies only to certain businesses above a turnover threshold). It also falsely claims that non-payment automatically leads to jail (the law prescribes standard administrative procedures, not automatic imprisonment).
A Facebook post claiming that the Zambian President has introduced a law requiring all poor Zambians to pay a new tax, the Minimum Alternative Tax (MAT), before selling anything—even at a loss—and non-payment leads to jail is FALSE.
On 30th August, 2025 a facebook user shared a post with words, “ HH has brought a new TAX for ALL poor Zambians to pay govt before selling anything even if it's at a loss called MINIMUM ALTERNATIVE TAX, jail if you don't pay. Eg: For every 100 bags of maize you harvest, 1 is for UPND GOVT in addition to old taxes. (Income tax Amendment #10 of 2025.).. scammers kuyabebele! 2026 ni pamakasa 👣 EFF.
Screenshot of Facebook Post
However, the claim that the Zambian President Hakainde Hichilema (HH), who is referred to as HH, unilaterally introduced a tax forcing all poor Zambians to pay before selling anything, with jail as a penalty for non-payment, is false.
Minimum Alternative Tax (MAT) does not apply to all Zambians, particularly not to poor or subsistence-level traders. This is in reference to subsistence-level traders with limited earning capacity who cannot afford high taxes. Several categories are exempt, and the law does not provide for automatic imprisonment for non-payment. MAT was enacted by Parliament under the Income Tax (Amendment) Act No. 10 of 2025, not by presidential decree or statutory instrument.
The claim misrepresents both the manner in which the law was introduced and its intended application. Only businesses that do not fall under existing tax exemptions are subject to MAT. Section 14A(5) of the Act exempts those liable for presumptive tax or turnover tax, meaning small-scale traders and farmers are not affected. The charging schedule caps the tax at 1% of annual turnover, not a blanket fee on every sale.
MAT is a minimum tax on turnover for eligible businesses and is creditable against future income tax for up to five years, serving as a safeguard to ensure compliance and reduce tax avoidance among larger companies. Enforcement follows standard administrative procedures—jail is not prescribed.
In an official statement on 31 August 2025, the Zambia Revenue Authority confirmed that all SMEs with an annual turnover below K5 million are exempt from MAT, further showing that the tax does not target poor Zambians.
Screenshot from Zambia Revenue Authority Facebook Page
The false claim also wrongly suggests that the President exceeded constitutional powers. In reality, MAT followed the normal parliamentary process: the Bill was debated, voted on by Members of Parliament, assented to by the President, and came into effect according to the Act.
Spreading this misinformation risks creating unnecessary fear and confusion, particularly among vulnerable groups, and undermines public trust in democratic and fiscal institutions.
This fact-check was produced by Mzeziti Mwanza as part of the African Fact-checking Alliance incubation program. It was produced with peer mentorship from Code for Africa’s fact-checking initiative, PesaCheck, with financial support from Norway. AFCA mentorship respects the journalistic independence of the researchers, offering access to advanced techniques and tools. The editorial decision remains with CYLA.