The ManicaPost
News Editor
GOVERNMENT has reviewed the tax-free threshold from $5 000 per month to $10 000 per month.
Presenting the 2021 National Budget in Parliament yesterday (Thursday), Finance and Economic Development Minister, Professor Mthuli Ncube said Government remains committed in improving workers’ disposable income as part of the broader agenda to increase aggregate demand and savings.
“The recent salary and wage adjustments for public and some private sector employees necessitates a corresponding review in the personal income tax framework. I, therefore, propose to review the tax-free threshold from $5 000 per month to $10 000 per month. I further propose to adjust the tax bands to begin at $10 001 and end at $250 000 per month, above which the highest marginal tax rate of 40 percent will apply. The above measures are effective from 1 January 2021,” said Prof Ncube.
Highlights:
Introduction of a fertilizer manufacturers’ rebate,
Farmers compensation: 2021 National Budget to allocate $2 billion to vulnerable farmers,
$52 billion to go towards the Ministry of Primary and Secondary Education as Government will fund the acquisition of PPEs,
$54,7 billion to the health sector,
$14, 4 billion to tertiary education sector,
$19,5 billion allocated towards devolution,
$23,8 billion allocated to the Defence, Security and War Veterans Ministry,
Annual inflation to reduce to an average of 135 percent in 2021.
