PAYE thresh-hold widened

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Harare, (New Ziana) – The government on Thursday widened the tax free Pay As You Earn (PAYE) thresh-hold to $5 000 from $2 000, a move meant to leave workers with more disposable incomes in the prevailing hyper-inflationary environment characterised by rapid cost increases of goods and services.

Government has repeatedly said it was concerned about the negative impact on workers of the rising cost of living in the country, and has put forward a number of measures to cushion them, including subsidising urban transport and the staple maize meal.

Last month, it increased civil servants salaries by 50 percent, and also awarded them a US$75 Covid-19 allowance to run for the next three months.

Presenting a mid-term review statement, Finance and Economic Development Minister Mthuli Ncube said the review was meant to cushion workers.

“In an effort to cushion employees from the tax bracket clip whereby previously untaxed employees become liable to tax due to inflation induced wage and salary adjustment, I propose to review the tax-free threshold from ZWL$2 000 to ZWL$5 000 per month,” he said.

“I further propose to adjust tax bands beginning at ZW$5 0001 and end at ZW$100 000 above which the high marginal rate of 40 percent will apply and this is with effect from 1 August 2020.”
New Ziana

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