GWERU — Former Zimbabwe National Chamber of Commerce (ZNCC) president and Political Actors
Dialogue principal Trust Chikohora has hailed the tax regime in the proposed national budget which
was presented last week.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube
presented a ZWL $59.5 trillion budget, which was tailored to consolidate economic growth and
macro-economic stability. The budget will be financed through projected tax revenue collections of
Z$51.2 trillion, non-tax inflows of Z$2.7 trillion, and borrowings.
Responding to the budget proposal, economist and politician, Chikohora said the Finance Minister
should revisit the tax regime and come with measures that will enable people to have adequate
disposable income.
He said the tax-free threshold should have been doubled after it was raised to $750 000.
“In my view, it is low. I should have thought that it should be at least double this which is about 200
dollars to make sense for people to have adequate disposable income,” he said.
Chikohora however, welcomed the bonus tax-free threshold which was raised to $7.5 million,
“which in my view is fair”.
Chikohora hoped that the proposed tax measures will help increase the tax net and will help in the
formalisation drive.
“The tax-exemption threshold for agriculture has been increased to $5,000 which is also useful and
now only traders registered for VAT will be able to purchase from manufacturers that are trying to
widen the tax net and trying to encourage formalisation.
“In the same vein licensed and tax-compliant customers will be the only ones able to purchase from
wholesalers and the VAT registration threshold has been reduced to $25,000 so all these measures
will help to increase the tax net and will help in the formalisation drive.
He also welcomed proposal to generate revenue from mineral resources as this will help develop
local communities.
“There will be a sharing of revenue equally with the State and disposal of mining rights which is fair
and can raise some income for the government. No license shall be granted to a lithium company
without a beneficiation plan and any production not up to lithium carbonate for lithium companies is
liable to export useful tax because it promotes beneficiation and also on resource companies.
“There will also be one percent levy on gross proceeds of lithium, black granite, and other
dimensional stones. This should be useful in terms of generating revenue from our natural resources
which can be used for development but this must also be used to develop the local communities …,”
said the former ZNNC president.
Source NewZiana
