News Flash 16 January 2019 – ZIMBABWE – Budget Speech & Tax Changes

Zimbabwe 2019 Budget Highlights

Highlights of the 2019 budget speech delivered by Finance Minister Mthuli Ncube:

• Budget deficit of $1,5 billion or 5% of GDP
• Growth in 2019 at about 3,1%
• Total revenues for 2019 projected at $6,6 billion
• Total expenditures for 2019 projected at $8,16 billion
• Inflationary pressure to stabilise in 2019
• Increase excise duty on cigarettes from US$20 to US$25 per 1000 sticks
• Introduce customs duty on motor vehicles and other selected goods in foreign currency
• Companies that collect VAT or any other taxes in United States dollars or any other currency to remit VAT using the same mode of payment
• Increase Excise Duty by 7 cents per litre on diesel & paraffin and 6.5 cents on petrol to reduce the arbitrage opportunities.

Tax Relief Measures:

• Review the tax-free threshold from US$300 to US$350 and further widen the tax bands from US$351 to US$20,000, above which income is taxed at the highest marginal tax rate of 45%
• Provide for further exemptions from the 2% Intermediated Money Transfer Tax
• Suspend customs duty and also exempt from VAT, sanitary ware products for a period of 12 months
• Suspension of customs duty on selected goods used by the physically challenged persons
• Redirect 5% of Third Party Insurance Cover to an Accident Compensation Fund

Government Ministries and Departments to remit all revenue collected into the Consolidated Revenue Fund

 

Contact our legislation team at info@crs.co.za if you require any additional information.

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