Tax rebate for health staff

Government has gazetted a tax rebate to be enjoyed by health services staff under the health services loan scheme as the employer implements non-monetary incentives aimed at cushioning its employees.

This is contained in a Statutory Instrument of a Government Gazette published last Friday by Finance and Economic Development Minister Professor Mthuli Ncube in terms of the Customs and Excise Act.

"Subject to this section, with effect from 1 January 2019, a rebate of duty shall be granted in respect of one motor vehicle imported or taken out of bond by a serving Public Health worker below the Deputy Director grade in Zimbabwe who is employed by the Health Service Board and grant aided health facilities for a period of not less than two years and is not under any disciplinary proceedings or on full Manpower Development leave, if such motor vehicle is (a) procured using loan availed under the Health Service Vehicle Loan Scheme managed through CMED Private Limited and (b) intended solely for the private use of the serving health worker and not for commercial or trade purposes," read the regulations.

The regulations also empowered Government through Secretary for Health and Secretary for Finance and Economic Development to approve granting of a rebate of duty to junior doctors who had been in service for a period of less than two years.

Maximum amounts to be obtained to the serving workers is also stipulated in the regulations with the highest being US$30 000 for those in Grade F, while US$15 000 for those in Grade E4 and E5.

Those in Grade E2 and E3 have a threshold of US$7 500 with the minimum being for those pegged at US$3 500 for those in Grade E1 and below.

For one to enjoy the rebate, a number of procedural requirements should be satisfied which include an application letter to be considered as a beneficiary, recommendation letter from the secretary responsible for Health confirming employment.

Other requirements include approval letter from secretary responsible for Finance and Economic Development and a copy of the intended beneficiary's driver licence and a pro-forma invoice and a bill of landing for the motor vehicle being imported and approval letter from CMED Private Limited for the loan in the case of funding from the CMED Health Service Loan Scheme.

Last week Government said it would refund businesses for extra costs incurred in buying fuel at new prices that became effective on January 13, raising expectations that this might positively impact on prices.

The rebates for excise duty on fuel — which cover the manufacturing, agriculture, mining and transport sectors — were announced through Statutory Instrument of a Government Gazette.