Personal Finance

Government to lower Value Added Tax (VAT)

The Government says it will cut value added tax (VAT) to 14.5% from 15% effective January 2020 in order to boost consumer demand.

This was revealed by Finance Minister Mthuli Ncube on Thursday while presenting his 2020 National Budget Statement in Parliament.

Ncube also proposed to lower the corporate income tax rate to 24% from 25%.

Still in tax, the Treasury chief reviewed the minimum and maximum thresholds for the infamous 2% transactional tax.

“I propose to review the Tax-Free Threshold from the current ZWL$20 to ZWL$100 and the maximum tax payable per transaction by corporates from the current ZWL$15 000 to ZWL$25 000 for transactions with values exceeding ZWL$1 250 000,” he said.

Meanwhile, Ncube said that the 2020 National Budget marks an exit from austerity to growth and employment creation.

Download the FULL 2020 NATIONAL BUDGET STATEMENT HERE. (4MB PDF)Zimbabwe Voice

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