Government reviews tax-free threshold to $5,000

By ZBC Reporter

THE tax free threshold has been reviewed upwards to 5000 Zimbabwe dollars per month, while mining companies have been directed to pay royalties in foreign currency.

This was revealed by Finance and Economic Development Minister Professor Mthuli Ncube as The Finance Bill underwent its second reading during Wednesday’s Senate seating with the move being aimed at cushioning  workers from Covid-19 induced challenges.

” In view of the Covid-19 triggered financial meltdown, employees earning less than five thousand dollars per month will not pay taxes starting from the month of August until the end of the year,” he said.

 According to Minister Ncube, the  move is set to increase foreign currency inflows into government coffers, while also paving way for charging mining royalties in foreign currency.

“One of the provisions of the finance bill is to allow mining companies to pay royalties in foreign currency unless requirements do not apply where they will continue paying in local currency,” he added.

Professor Ncube also indicated that, as an incentive, investors on the soon to be launched Victoria Falls Stock Exchange will not be liable to paying taxes.

” All investors will not pay taxes for accruals and receipts on the VFEX to ensure to incentivise more global investors to come and invest on this stock market,” said Ncube.

Minister Ncube also revealed that extra measures to broaden safety nets and harness economic growth will be announced in the 2021 National budget to be presented in two months time.

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