STAFF WRITER
Government has reviewed the tax-free threshold to ZWL$10 000 from ZWL$5 000 a month effective January 1, Finance Minister, Mthuli Ncube said Thursday.
Presenting the 2021 National Budget, Ncube said the threshold review was meant to cushion workers as salaries continue to be eroded by high inflation.
“In an effort to cushion employees, I propose to review the tax-free threshold from ZWL$5 000 to ZWL$10 000,”Ncube said.
Bonus threshold, Ncube said has been reviewed upwards from ZWL$5 000 to ZWL$25 000.
Ncube said the move was necessitated by the need to enhance disposable income at a time when household have been significantly affected by Covid-19 pandemic.
It comes at a time when civil servants are clashing with their employer, government, over poor salaries.
They are demanding to be paid in US dollars.
Budget summary
.Mthuli Ncube tables ZWL$421.6bn Budget
.Economy estimated to contract by 4.1% this year and rebound by 7.4% in 2021
.Budget deficit of ZWL$4.9bn is anticipated by end of 2020
.Annual inflation projected at 654.9% this year and 134.8% in 2021
.US$75m set aside to compensate for losses incurred by depositors when 1:1 exchange rate was removed
.Upward review of IMTT tax free threshold to ZWL$1,500 from ZWL$300
.150k formal jobs expected to be recovered next year having been lost due to the Covid-19 pandemic
.Rebate on duty on fertilisers manufacturers
.Suspension of duty of motor vehicles by Safari Operators and buses for Tour Operators
