Zimbabwe: Finance Bill amended clauses, awaiting promulgation

Zimbabwe: Finance Bill amended clauses, awaiting promulgation

Finance Bill (No. 9A) 2022 reflects the Finance Bill as finally passed by the National Assembly on Thursday 1st September, sent to the Senate on the same date and considered by the Senate on 6th and 7th September. The Senate passed the Bill but, at the request of the Minister of Finance and Economic Development, sent it back to the National Assembly with recommendations that clauses 2 and 3 be brought into line with the changes to those clauses actually agreed to by the National Assembly.

Clauses 2 and 3 – Income and threshold and bands
These clauses in their original form proposed to increase both the threshold and the tax bands specifying the rates of income tax, with effect from 1st August 2022. MP's rejected the Minister’s proposals as utterly inadequate to cope with inflation, and insisted that the amounts be increased. They suggested the threshold be raised from the Minister’s proposed threshold [a monthly income of ZW$ 50,000] to ZW$ 100,000 per month or even higher; the Minister eventually compromised on increasing the threshold to ZW$ 75,000 per month. Proportional changes to the tax bands were agreed.

Result: for the last five months of 2022, a monthly salary of ZW$ 75,000 will be tax-free and the highest rate of income tax [40%] will be charged on a monthly salary of over ZW$ 1,000,000.

Note: There was no change to the tax threshold or bands for incomes in US dollar
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