Browsing: Zimbabwe Budget

Treasury is expected to continue its trajectory f fiscal consolidation and discipline together with increasing incentives to grow investments in value chain sectors and stability in power supply.
On the taxation front the budget was expected to provide relief to the poor who make up at least 49.9 per cent of the population of the country. This is particularly significant because it has been said on several occasions that Zimbabwean people are among the most taxed in southern Africa.
This is partly the legacy of the minister of finance’s austerity for prosperity policy which resulted in a largely resented 2 per cent transfer tax on all transactions. There have been calls for this tax to be repealed and the tax-free threshold to be increased.…

Zimbabwe’s Finance Minister Mthuli Ncube delivered an optimistic 2021 $426 billion worth national budget. The upcoming year’s budget under the theme: Building Resilience and Sustainable Economic Recovery, is meant to be a gateway for an economic revival in the struggling country. 

The budget allocated a sizable proportion of the funds towards the health and education sectors.  

Key Budget Highlights

• Budget size $421.6 billion
• Revenue collection projected at $390.8 billion
• Public debt $1.9 million
• The economy is expected to grow 7.4% in 2021 following a consecutive decline in the past two years.
• Year on year inflation is projected to end the year 2021 at 9% 
• Upward review of tax-free threshold on salaries and 2% transaction levy and bonus.
• Foreign currency-denominated corporate tax payments.
• Tightening of Informal sector tax (Presumptive tax) collections.

Economic Recovery 

The minister presented optimistic growth metrics. The budget projects an anticipated 7.4% economic growth trajectory following two …