News / National
Mthuli Ncube willing to review tax proposals
11 Dec 2024 at 06:30hrs | Views
The Zimbabwean Treasury may revise certain tax measures outlined in the 2025 National Budget following concerns raised by business leaders, economists, and other stakeholders. Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube announced this during the 2025 post-budget breakfast meeting held in Harare on Monday.
Prof. Ncube acknowledged that some taxes, including the intermediated money transfer tax (IMTT), have had notable impacts on businesses. He revealed that the Government is already conducting studies to evaluate these effects.
"We have directed the Treasury to do a study on the impact of the intermediated money transfer tax (IMTT) on businesses, and we are ready to review based on the results of the studies," said Minister Ncube.
He invited businesses to share detailed submissions on how the IMTT, currently at 2 percent, is affecting their operations. "We have January and the midterm policy review, where we could make some adjustments based on actual facts on the ground," he added.
Business leaders have voiced concerns that the IMTT is eroding profit margins, reducing competitiveness, and contributing to higher overhead costs. These overheads include staff expenses, utilities, rentals, and bank charges.
Minister Ncube defended the Government's tax policies, emphasizing that they are designed to foster economic growth and address critical issues such as environmental sustainability, health funding, and industrial protection.
He highlighted the surtax on plastic bags as a more balanced approach compared to outright bans implemented in other countries. "The budget has got some green aspects, such as the tax on carrier bags. In other countries, they have banned those plastic bags, but over the years I have resisted that ban…we would rather have a surtax and not kill industries," said Minister Ncube.
Minister Ncube also discussed the tax on fast foods, which is expected to bolster health sector funding amid global financial constraints. Additionally, he outlined incentives for green initiatives, including the development of charging stations for electric vehicles.
In line with broader economic goals, the 2025 fiscal plan proposes incentives for the automotive sector, including car and bus assembly. These measures aim to stimulate local manufacturing and reduce Zimbabwe's dependence on imports.
Minister Ncube reiterated the Government's commitment to balancing economic growth with environmental and health priorities while remaining open to reviewing tax policies in response to stakeholder feedback.
Business leaders are hopeful that their submissions will prompt meaningful adjustments during the upcoming policy reviews.
Prof. Ncube acknowledged that some taxes, including the intermediated money transfer tax (IMTT), have had notable impacts on businesses. He revealed that the Government is already conducting studies to evaluate these effects.
"We have directed the Treasury to do a study on the impact of the intermediated money transfer tax (IMTT) on businesses, and we are ready to review based on the results of the studies," said Minister Ncube.
He invited businesses to share detailed submissions on how the IMTT, currently at 2 percent, is affecting their operations. "We have January and the midterm policy review, where we could make some adjustments based on actual facts on the ground," he added.
Business leaders have voiced concerns that the IMTT is eroding profit margins, reducing competitiveness, and contributing to higher overhead costs. These overheads include staff expenses, utilities, rentals, and bank charges.
Minister Ncube defended the Government's tax policies, emphasizing that they are designed to foster economic growth and address critical issues such as environmental sustainability, health funding, and industrial protection.
He highlighted the surtax on plastic bags as a more balanced approach compared to outright bans implemented in other countries. "The budget has got some green aspects, such as the tax on carrier bags. In other countries, they have banned those plastic bags, but over the years I have resisted that ban…we would rather have a surtax and not kill industries," said Minister Ncube.
Minister Ncube also discussed the tax on fast foods, which is expected to bolster health sector funding amid global financial constraints. Additionally, he outlined incentives for green initiatives, including the development of charging stations for electric vehicles.
In line with broader economic goals, the 2025 fiscal plan proposes incentives for the automotive sector, including car and bus assembly. These measures aim to stimulate local manufacturing and reduce Zimbabwe's dependence on imports.
Minister Ncube reiterated the Government's commitment to balancing economic growth with environmental and health priorities while remaining open to reviewing tax policies in response to stakeholder feedback.
Business leaders are hopeful that their submissions will prompt meaningful adjustments during the upcoming policy reviews.
Source - The Herald