Harare (New Ziana) – Finance and Economic Development Minister Prof Mthuli Ncube on Thursday increased the tax – free income threshold from ZWL$10 000 to ZWL$25 000 as part of efforts to provide relief to taxpayers.
Presenting the 2022 National budget statement, Prof Mthuli Ncube said higher than projected wage reviews during the course of 2021 by Government and some private sector employers pushed a number of taxpayers into higher income tax brackets resulting in a higher tax burden.
“In order to provide relief to taxpayers and also boost aggregate demand for goods and services, I propose to adjust the tax-free threshold from ZWL 10 000 to ZWL 25 000 and also adjust the tax bands to end at ZWL 500 000 above which a marginal tax rate of 40% will apply,with effect from 1 January 2022,” he said.
“I, further, propose to review the tax-free threshold on income accruing in foreign currency from US$70 to US$100, with effect from 1 January 2022. Other foreign currency tax bands remain unchanged,” he added.
Prof Mthuli also proposed to review upwards the local currency tax – free threshold on bonus from ZWL$25 000 to ZWL100 000.
“I also propose to review the local currency tax-free bonus threshold from ZWL 25 000 to ZWL 100 000 and the foreign currency tax-free bonus threshold from US$ 320 to US$ 700, with effect from 1 November 2021,” he said.
The Government is this year paying its government workers bonus in United States Dollars as part of efforts to improve conditions of service for civil servants.
New Ziana