Judith Phiri, Business Reporter
THE Minister of Finance and Economic Development, Professor Mthuli Ncube, has reviewed the local currency tax-free bonus threshold from ZWL$$25 000 to ZWL$100 000.
Presenting the proposed 2022 National Budget in Parliament yesterday, Prof Ncube also upped the foreign currency tax-free bonus threshold from US$320 to US$700, with effect from 1 November 2021.
For companies, the Minister said a minimum threshold of US$10 000 of the value of equipment is required for processing a rebate in order to strengthen the provisions governing the facility and to minimise loopholes in administration.
Prof Ncube said the threshold had been set to enhance transparency and accountability in the administration of rebate facilities and address the deficiencies that have been identified.
“Companies applying for the rebate of duty facility should be incorporated; no third-party companies shall be granted rebate of duty. These include tribute agreements and hired suppliers or contractors; a minimum threshold of US$10 000 of the value of equipment is required for processing a Rebate,” said Prof Ncube.
He also proposed to adjust the tax-free income threshold from ZWL$10 000 to ZWL$35 000.