https://www.chronicle.co.zw/latest-gvt-to-issue-us100m-bonds-on-vfex-as-part-of-deficit-financing/

Nov. 26, 2021

Finance and Economic Development Minister Mthuli Ncube says the Treasury will issue US$100 million worth of Government bonds to be listed on the United States dollar-denominated Victoria Falls Stock Exchange (VFEX) during the first quarter of 2022 as part of deficit financing. The bonds will go towards road rehabilitation, public health, and irrigation infrastructure.

ZIMRA Introduces Youth Employment Incentive (YEIT)

ZIMRA under Section 13A of the Finance Act (Chapter 23:04) has introduced the Youth Employment Incentive (YEIT), to qualifying taxpayer who employs youths in their companies who are below the age of 30 years with effect from 01 January 2020. The credit for each additional employee hired is $1,500.00 per month up to a maximum amount of $180,000.00 per annum.

Recovery of $80 million worth of grafted tax funds

National revenue collector, the Zimbabwe Revenue Authority (Zimra), intensified war against graft and other forms of crime resulting in the recovery of $80 million during the fourth quarter to December 31, 2019, a senior official has revealed. This contributed significantly to the authority’s revenue collected for the quarter that stood at 651 percent ahead of the same quarter in the prior year.

Surpassing revenue collection targets by 44%

RTGS $3,49 billion was mobilised through various taxes, surpassing the target by 44 percent;

Increase of the Tax Free Threshold to ZWL$3500

THE Zimbabwe Revenue Authority (ZIMRA) has broadened the tax-free threshold to $3 500 with effect from August 1, 2019 from $700 in a bid to improve disposable incomes in the face of rising prices.

Treasury sinks $400m into social services, infrastructure

More than seventy-four per cent (74%) of the money raised so far through the Intermediated Money Transfer Tax (IMTT), or the 2 per cent tax, has been channelled towards infrastructure projects, health, education and social safety nets in line with Government’s commitment to ringfence the resources for social services. The IMTT was introduced in October last year. Latest official statistics from the Ministry of Finance and Economic Development indicate that of the $541 million that has been raised since October last year, $270 million has been used to fund health care and the Basic Education Assistance Module (Beam) – a facility specifically designed to provide quality education to orphans and vulnerable children.

Zimbabwe expects to raise $700 million a year from the new 2% tax on money transfers.

US$52.5 was raised in November and US$103.8 in December 2018 giving a total of US$166.2 million for 2018 from the 2% transaction tax. 

ZIMRA has embarked on major system and process reforms .

THE Zimbabwe Revenue Authority (Zimra) says it is ready to contribute to a “new dispensation” through tax administration reforms, which seek to simplify tax rules and help taxpayers to meet regulatory requirements more effectively and efficiently.