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
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