The Sunday Mail
HARARE – Finance and Economic Development Minister Mr Patrick Chinamasa today hiked excise duty on fuel and imposed a 25 percent levy on handset and other related gadgets as part of revenue measures to shore up Government revenues, particularly at a time when the local economy is slowing down.
The new measures, announced in the Mid-Term Fiscal Policy Review, also include relief measure for gold miners, who, since the beginning of the year, have been plagued by retreating international gold prices.
Presumptive tax on small-scale miners were scrapped altogether.
Some of the revenue measures announced by Government:
– Excise duty on diesel and petrol increased to 30% and 35% respectively effective September 11, 2014 (Previously it was 25% and 30% in that order)
– 5% levy on both voice and data
– Duty on handsets and other ICT gadgets, which was reduced in August 2009, increased to 25% as dispensation is believed to have achieved intended result : Mobile penetration currently on 106.4% (13.9 million subscribers) effective October 1
– A2 beneficiaries of the land reform programme expected to contribute to the cost of surveying in order to expedite issuance of 99-year leases
– Blankets previously imported as raw materials are now subject to customs duty.
– Duty on select motor vehicle classes announced effective November 1. Vehicle imports were accounting for 10% of the import bill
– Much punitive duty structure for commodities that can be locally produced/ locally available like dairy produce, vegetable and miscellaneous vegetable products, canned foods, soaps and cosmetics effective October 1
Concessions
– Export tax on the raw hides scrapped between January and December this year. It was previously 70 cents per kilogram
– Gold royalty slashed from 7% to 5% for big miners, and removal of presumptive tax for small-scale gold producers
– Custom millers and elusion plant operators expected to register as Fidelity Printers and Refiners gold buying agents.
Government also expects the EU to scrap illegal sanctions targeted on Zimbabwe once Article 96, which forms the measures, expects on November 1.
Additional measures were also announced targeted at the forthcoming 2014/2015 agriculture season.
An estimated US$252 million will be mobilized for the Presidential Input Support Scheme, while input support measures for soyabean and livestock producers – targeting about 1,6 million households was announced.
Click Here to download the Full presentation – 2014 Mid-Term Fiscal Policy Review.pdf
