The ManicaPost
Tax-free threshold reviewed from $700 to $2 000 per month. Tax bands adjusted to begin at $2 001 and end at $50 000, above which the highest marginal tax rate of 40 percent applies. Tax-free bonus thresholds increased from $1 000 to $5 000, with effect from 1 November, 2019.
Civil servants to receive bonus inclusive of housing and transport allowances this month.
Non-taxable portion of the retrenchment package reviewed from $10 000 to $50 000 or one-third of the package, to maximum of $80 000.
Tax-free threshold on the Intermediary Money Transfer Tax reviewed from the current $20 to $100 and the maximum tax payable per transaction by corporates reviewed from the current $15 000 to $25 000 for transactions with values exceeding $1 250 000.
Monthly inflation expected to fall to single digit from the first quarter of 2020 to close the year around 2 percent.
Economic recovery of up to 3 percent is projected in 2020.
VAT standard rate reduced from 15 percent to 14,5 percent with effect from 1 January, 2020, in order to stimulate aggregate demand.
Government reviewing and tightening the Gold Trade Act, and capacitating the Gold Mobilisation Unit to curb leakages which have been depriving the country of foreign currency.
Subsidies for mass transport system will continue and Government will also capacitate ZUPCO to provide an efficient public transport system. Budget allocates $540 million as a subsidy to the Urban Mass Transport System.
Tourism expected to continue on growth trajectory with tourist arrivals expected to marginally increase to 2,7 million in 2019.
Budget provides for capitalisation of the following institutions, which support various MSMEs projects:
Women Development Fund, $20 million;
Community Development Fund, $15 million;
Zimbabwe Women Microfinance Bank, $100 million
SMEDCO, $90 million
Empowerbank, $50 million.
Budget will have a provision for the supply of sanitary wear for female learners beginning with rural primary and secondary learners from Grade 4 to Upper Sixth Form and a provision of $200 million has been made.
