News / National
Mthuli Ncube backs down on taxes
26 Jul 2024 at 06:39hrs | Views
The Zimbabwean government has removed value-added tax (VAT) from selected meat products, reduced presumptive taxes for informal traders, and mandated that all government service fees be paid in local currency. These measures aim to lower the cost of living, boost tax compliance, and promote the use of the ZiG.
With the cost of living having risen significantly and the economy expected to contract by 2% this year, the government is focusing on improving domestic tax collection. By lowering presumptive taxes for informal traders, who play a significant role in the economy, the government hopes to encourage greater tax compliance.
Finance Minister Mthuli Ncube's recent budget review also included proposals for payment of all user fees and customs duties in local currency to support the ZiG and combat money laundering. Additionally, VAT was removed from various meat products to increase their demand, and the fiscalisation of domestic fuel sales is set to begin in November 2024.
The scope of the Indigenisation and Empowerment Act is being expanded to include more sectors, and the urban mass transportation system has been discontinued to allow for the recapitalisation of the Zimbabwe United Passenger Commission (Zupco). The economic growth forecast for the year has been revised down to 2% due to the impact of drought, though inflation is expected to remain stable.
With the cost of living having risen significantly and the economy expected to contract by 2% this year, the government is focusing on improving domestic tax collection. By lowering presumptive taxes for informal traders, who play a significant role in the economy, the government hopes to encourage greater tax compliance.
Finance Minister Mthuli Ncube's recent budget review also included proposals for payment of all user fees and customs duties in local currency to support the ZiG and combat money laundering. Additionally, VAT was removed from various meat products to increase their demand, and the fiscalisation of domestic fuel sales is set to begin in November 2024.
The scope of the Indigenisation and Empowerment Act is being expanded to include more sectors, and the urban mass transportation system has been discontinued to allow for the recapitalisation of the Zimbabwe United Passenger Commission (Zupco). The economic growth forecast for the year has been revised down to 2% due to the impact of drought, though inflation is expected to remain stable.
Source - newsday
