Tax-free threshold for individual incomes increased to ZW$600 000 per year
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Loading... - Deborah Korir
- 01 Aug 2022
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Government has revised the tax-free threshold on local currency remuneration from ZW$300,000 to ZW$600,000 per annum, while tax bands will end at ZW$12 million from the current ZW$6,000,000 per annum.
Amounts above the ZW$600 000 threshold will be levied at a rate of 40 percent, with effect from 1 August 2022.
This came out during the Mid Term Budget and Economic Review and Supplementary Budget presentation by Finance and Economic Development Minister, Professor Mthuli Ncube this Thursday afternoon.
The measure is envisaged to increase disposable income, spur consumption spending and income for corporates, said the Minister.
Professor Ncube also proposed a review of the local currency tax-free bonus threshold from ZW$100,000 to ZW$500,000 with effect from 1 November 2022.
Despite the measures put in place to cushion the masses against inflationary tendencies and an unstable exchange rate, Professor Ncube noted that the economy must withstand continued geo-political tensions that are driving the surge in international food and oil prices (imported inflation); growth in broad money driven by excessive liquidity held by banks despite reserve money being targeted at 0%; adverse inflation expectations; speculative tendencies; and continued arbitrage in the economy.
Meanwhile, economic stabilisation measures announced by the Minister will include continued monitoring of price and exchange rate developments with a view to introducing additional response measures aimed at restoring stability and facilitation of the development of primary and secondary markets for debt instruments, in order to improve monetary policy transmission and further create demand for local currency denominated financial assets. Read More…
