Staff Reporter

The Ministry of Finance, Economic Development and Investment Promotion has outlined several key proposals aimed at reforming the tax system in Zimbabwe to rebuild market confidence and creating more demand through various policy measures.

Speaking during the mid-year budget review yesterday at the New Parliament Building in Mt Hampden yesterday, the Minister of Finance, Economic development and Investment Promotion, Professor Mthuli Ncube proposed several measures to promote money circulation and combat financial crimes.

“To promote money circulation and combat money laundering, bribery, and financial terrorism, I propose that all presumptive taxes be paid in local currency, regardless of the country’s currency. Additionally, to promote the usage of local currency, I propose that customs duties be payable in local currency to state authorities. Furthermore, all user fees for Government services should exclusively be payable in local currency unless otherwise specified,” he added

The Minister also addressed value-added tax (VAT) legislation, noting a decline in demand due to lower income sources.

“To restore demand for new products, I propose exempting live cattle, pigs, goats, sheep, and wildlife from VAT. Additionally, I propose exempting pork, cheese, and carpenter services from VAT,” Minister Ncube announced

To tackle fraudulent activities in transit areas, the Minister highlighted ongoing issues despite the introduction of the Electronic Car Detection System (ECTS) in 2017.

“I propose securing duty and levies on fuel reported under the removal in transit facility by imposing payment of duty upon entry. This duty and levies shall be recovered on a regulatory basis and will not apply to fuel uplifted from the NOIC.The Zimbabwe Revenue Authority (ZIMRA) will manage the duty refund process efficiently through dedicated bank accounts. For operators abusing the removal in transit facility, I propose introducing mandatory fiscalization of domestic fuel sales, effective from November 1, 2024.” Professor Ncube stated.

In addressing the Utilization and Empowerment Act, the Minister proposed expanding the sectors reserved for Government operations.

“I propose amending the legislation to include additional sectors such as the power and logistics sector, customs clearing, shipping and forwarding, water hauling, bridging, brick making, and pharmaceutical machining,” he said.

Meanwhile, Government’s tax proposals aim to enhance economic stability, boost market confidence, and promote the use of local currency, setting the stage for sustained economic growth in Zimbabwe.