2019 Budget Highlights

HARARE - Finance minister Mthuli Ncube has presented the National Budget Statement for 2019.

See budget highlights below:

• Budget deficit of $1,57 billion or 5 percent of GDP;

• Growth in 2019 at about 3,1 percent (driven by mining, distribution, hotels and restaurants, transport and communication and agriculture);

• Inflationary pressures to stabilise in 2019;

• Total revenues for 2019 projected at $6,6 billion;

• Total expenditures for 2019 projected at $8,16 billion;

• Extension of suspensions and rebate of duty facilities to various industries;

• Increase excise duty on cigarettes from $20 to $25 per 1 000 sticks;

• Introduce customs duty on motor vehicles and other selected goods in foreign currency;

• Companies that collect VAT or any other taxes in US$ or any other currency to remit VAT using the same mode of payment;

• Increase Excise Duty by 7 cents per litre on diesel & paraffin and 6,5 cents on petrol to reduce the arbitrage opportunities;

• Review the tax-free threshold from $300 to $350 and further widen the tax bands from $351 to $20 000, above which income is taxed at the highest marginal tax rate of 45 percent;

• Provide for further exemptions from the 2 percent Intermediated Money Transfer Tax;

• Suspend customs duty and also exempt from VAT, sanitary wear products for a period of 12 months;

• Suspension of customs duty on selected goods used by the physically-challenged persons;

• Redirect 5 percent of Third Party Insurance Cover to an Accident Compensation Fund;

• Government ministries and departments to remit all revenue collected into the Consolidated Revenue Fund

 

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