Midterm fiscal budget highlights

  • Exports are expected to reach US$7,3 billion, imports to reach US$8,1 billion by year end.
  • Current account deficit expected at US$800 million by year end.
  • Foreign currency VAT to be codified into law, and payments to be backdated to February 1, 2019
  • Companies that owe Zimra to be temporarily closed.
  • Cross border traders are now liable to 10% withholding tax.
  • A $929 billion (US$2,11 billion) supplementary budget where 53% will go towards employment costs to cushion public servants against increasing cost of living.
  • Revenue collections to year end are now projected at $1,7 trillion, (US$3,87 billion) while expenditures are now estimated at $1,9 trillion( US$4,32 billion).
  • Domestic debt at $1,3 trillion (US$3,5 billion) with external debt standing at US$13,2 billion
  • GDP growth revised downwards to 4,6% from the initial 5,5%.
  • Tax-Free threshold on local currency remuneration adjusted to $50 000 (US$113,89)per month from $25 000 (US$56,94)
  • Tax bands to end at $12 million (US$27 334) from the current $6 million (US$13 667) per annum, above which tax will be levied at a rate of 40% with effect from August 1, 2022.
  • A 5% royalty rate to be applied  to platinum  effective  January 1 2023.
  • A royalty rate of 5% will also apply to lithium.
  • VAT registered operators to pay duty in foreign currency to facilitate offsetting of output and input tax in the same currency.