Tax review expected in midterm budget

By Stanley James, Business Editor

TAX experts are expecting treasury to introduce tax relief packages to cushion industry and individuals to improve viability and increased spending.

A combination of global shocks, currency instability and the effects of Russia’s Special Military Operation in Ukraine have weighed down on Zimbabwe’s economic performance of late, and government has made its position clear on the need to cushion the citizenry and industry against the shocks.

Tax experts have since made their submissions to treasury ahead of the mid-term budget review slated for the end of this month.

High on the list is a review of the income tax free thresholds.

“The review is really necessary taking into account the currency volatility, exchange rate movements and inflationary pressures so basically it is the fiscal authorities’ role to cushion the ordinary consumers,” said Simbarashe Hamudi a tax expert.

Incentives to revitalise productive sectors of the economy have also been cited as key to overall economic growth.

“Industry needs incentives so it is all up to the fiscal authorities in ensuring that they strike a balance between spending and revenues by focusing on policies that guarantee sustainable production processes in the short to long term,” said Dr Nyasha Kaseke a tax expert at the University of Zimbabwe’s Business School.

There are also expectations that treasury will review revenue forecasts for this year in the wake of inflationary pressures.