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Tax-free threshold reviewed upwards

Zimbabweans earning ZWL$5, 000 and below will enjoy a tax-free income with effect from next month following a review of the tax-free threshold from ZWL$ 2, 000 to ZWL$5, 000 by Finance and Economic Development Minister, Mthuli Ncube Thursday.

Unveiling his revenue measures immediately after presenting the 2020 mid-term budget review statement in Parliament, Ncube said the review was meant to cushion citizens against inflation pressures, which have since eroded their incomes.

“I now turn to PAYE (Pay As You Earn), tax-free thresholds,” said Ncube.

“This is to support our citizens and also to reduce the tax burden. I propose to review the tax-free threshold from ZWL$ 2, 000 to ZWL$ 5, 000 per month. I further propose to adjust the tax bands to begin at ZWL$5, 001 and end at ZWL$ 100, 000 above which the highest marginal weight of 40 percent will apply. This is with effect from 1 August 2020.”

He also said the country’s health workers would continue to receive tax-free COVID-19 risk allowances.

“Let me turn to tax exemption on the risk allowances by our frontline health personnel.

I propose to exempt from tax COVID-19 risk allowances payable to this category of employees for a period of 12 months commencing from the 1st of April 2020.”

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