A HISTORY OF TAX AND TAXATION IN COLONIAL ZAMBIA

Introduction

Once Northern Rhodesia had been pacified, it became possible to impose taxes in the
territory. The undercapitalised British South Africa Company urgently needed to exploit
every possible kind of revenue because it did not only have to govern a large territory but
also provide profits to its shareholders.

One of the most obvious means of obtaining more money was the imposition of tax on the
local African people. The question of taxation in turn was closely linked to the labour
question, for the need to earn tax-money was one of the most important incentives to induce
Africans to take up paid employment (but, of course, not the only reason for labour migration
during the colonial period). If Africans were unwilling to work, they had at times to be forced
to do so. In the early days of colonial rule, Africans were forced to pay tax or some colonial
officials could burn down their huts or get flogged.

Implementation of Tax Policy

In order to solve the financial problems in the territory, the BSACo introduced three types of
taxes i.e. Customs and Excise Duty, Income Tax, and Native/African Tax (see Pim Report,
1938). Taxation in Northern Rhodesia was introduced at different dates; in North-Eastern
Rhodesia (NER) in 1900 and North-Western Rhodesia (NWR) in 1904. Also because of the
different nature of administration in the two Rhodesias, different taxation regimes existed
until 1911 when the two territories were merged to form Northern Rhodesia.

In NER the type of tax was called Hut Tax and was initially pegged at 3 shillings per annum.
It was introduced by Proclamation No. 9 of 1900. This tax was levied as a money tax on each
wife with a separate hut, except the first one.

In NWR the type of tax was called Poll Tax and was paid annually as well. It varied between
5 shillings and 10 shillings upon introduction depending on the district. Unlike Hut Tax, Poll
Tax was levied on all adult males and each additional wife except for the first one.

In the early days of its imposition, three basic ways existed in which tax could be collected
i.e. through cash, in kind or by offering one’s labour power to the government. From 1905,
however, the govt only accepted cash as a mode of paying tax. This was in line with a similar
policy adopted in Southern Rhodesia where payment of tax in kind was abolished in 1895.

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The govt banned this policy because it was cumbersome- the tax payer was responsible for
transporting the goods to a usually non-existent market. The govt did not want to be loaded
with a lot of unsaleable goods.

When NER and NWR merged in 1911, the taxation system changed. Hut Tax was done away
with and Poll Tax was adopted throughout the country. The govt found out that the
implementation of Hut Tax was unsatisfactory in terms of collection for two reasons. It made
huts to be overcrowded. It was also viewed unfair to those men who inherited widows
according to African custom.

Between 1914 and 1920 Poll Tax was at 5 shillings per person for all districts in former NER
and 10 shillings for all districts in former NWR. An attempt to increase the tax to 10 shillings
in former NER was met with a lot of resistance from chiefs and their subjects. It was
therefore put at 7 shillings and 6 pence. Up to 1925, the only district with the lowest tax rate
was Balovale (Zambezi) where Africans paid 5 shillings.

Further tax policy changes took place in 1930. The government abolished tax on plural wives
in that year. Chief Kawaza of the Chewa, for example, noted that it was of the erroneous to
argue that a polygamous man was rich. It was further argued that taxing extra wives
penalized those men who accepted responsibility of taking care of widows under customary
law. The system had also resulted in unnecessary divorces. It was also difficult for state
officials to establish which one was the first wife.

However, in the same year, the tax was increased by 2 shillings 6 pence throughout Northern
Rhodesia – meaning that in Zambezi people now paid 7 shillings 6 pence.

But with the onset of the world economic depression (1929-1933) the tax regime was revised
because it became difficult for Africans to pay since many lost their jobs. Thus a tax
committee was constituted at the end of 1933 to make recommendation to the govt. A flat tax
rate of 7shillings 6 pence was instituted throughout the territory including Zambezi. This
measure was intended to ensure that Africans leaving their home districts did not have to pay
higher taxes elsewhere. In Mwinilunga district, for example, it was reduced from 12 shillings
to 7 shillings 6 pence.

There had been variations in tax rates due to the following reasons:

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1. Availability of Market for African produce- areas which had markets for farm produce had
higher taxes than areas where no market existed. Africans had to sell their produce in order to
raise tax money. The existence of a railway line between Livingstone and Ndola gave
stimulus to Africans to trade and raise tax money through the sale of livestock and grain.
Compare with Zambezi.

2. The Level of Economic Development of a Region - areas like the Copperbelt, Kabwe,
Mbala, Southern and Eastern provinces had higher tax regimes. Chipata flourished because of
a large population of Europeans engaged in tobacco farming. Kabwe and Copperbelt had
higher rates due to mining activities. Bulozi also had a flourishing beef industry.

3. The Existing Tax Regime in Neighbouring Countries – for example, in Malawi, tax was
put at 6s. Therefore people in Eastern Zambia argued that they could not pay more than that
rate. The Chewa and Ngoni easily moved to Malawi or Mozambique in order to evade paying
taxes. Others had relatives there, and cultivated across the border. In 1901 many people from
Chief Mushota’s area in Luapula province ran away to the Congo because of high local tax;
even in Southern Rhodesia some people came to live in the Gwembe valley in 1898 due to
high tax there.

Effects of Taxation

1. Population dynamics in border areas due to migrations.

2. Gender dynamics – a number of divorces before 1930 because of tax on plural wives.

3. Africans were dehumanised e.g. through beatings for defaulting on payments (one of the
most ruthless colonial District Commissioners was J.E. Stephenson, popularly nicknamed
“Chirupula”).

4. Labour migration was intensified.