Zimbabwe increase tax-free threshold to Z$700

Zimbabwe today increased the tax-free threshold from Z$350 a month to Z$700 with immediate effect in an effort to cushion taxpayers and increase aggregate demand for goods and services.

It also increased the tax-free threshold for electronic transactions from Z$10 to Z$20.

These were some of the measures introduced by Finance Minister Mthuli Ncube when he presented his supplementary for 2019 today.

Others measures were:

• Removal of duty on lithium-ion solar batteries
• Increase in interest on outstanding tax debts from 5 percent plus libor to 25 percent
• Suspension of duty on commercial tyres to ring-fence importation of 100 000 commercial tyres at a lower duty rate of 15% for a period of twelve months
• Repeal of the Indigenisation and Economic Empowerment Act and replacing it with the Economic Empowerment Act, which will be consistent with the current thrust “Zimbabwe is Open for Business”

Below are the highlights of the supplementary budget

Highlights of supplementary budget

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