Adele Bester 7 days ago. We are located at the 4th Floor, Block E, New Government Complex, Corner Samora Machel and Fourth Street, Harare, Zimbabwe. For instance, in the Democratic Republic of Congo (DRC) which has one of the highest recorded rates of business taxation, it is estimated that about half of manufacturing activity is informal. Uganda: Kampala-Entebbe Expressway, World's Most Expensive Road? Ncube is projecting a 7.4% overall GDP growth, with year-on-year inflation by the end of 2021 reaching 9%. Government reprioritised budget allocations and announced $18.2 billion Stimulus Package to save lives and livelihoods. Instead the government piled more taxes on its already over-taxed citizens. “Key allocations under the 2021 Budget are goods and services ($59,4 billion), employment costs ($142,6 billion), interest ($1,5 billion) and transfers ($86,5 billion), with the balance reserved for capital development programmes,” said the Finance Minister. Business. THE 2021 budget presented by Finance minister Mthuli Ncube last week missed a golden opportunity to stimulate various productive sectors of the economy. The PAYE tax free threshold should have been reviewed in line with the Poverty Datum Line (PDL) which is pegged at ZW$17 965,87 (US$219) as at September 2020 as a way of boosting disposable incomes. This is expected to incentivise youth employment creation. ... Zimbabwe Media Commission Bill This Bill awaits the Second Reading speech to be given by the Minister of Information, Publicity and Broadcasting Services. These projections are however dependent on a good agricultural season, among others. The Minister is proposing an upward review of excise duty on alcoholic beverages and cigarettes. Grain Millers Association of Zimbabwe national chairman Mr Tafadzwa Musarara told The Herald last night that the 2021 Budget was positive. By submitting above, you agree to our privacy policy. Your email address will not be published. Agriculture Ministry to be allocated $46,3 billion in the 2021 National Budget. The budget would lay out the inaugural 12 months long implementation tool of the Government’s newly announced five-year economic policy, the National Development Strategy (NDS1 2021 … The country continues to overly rely on external funding to finance our healthcare. We operate from Cape Town, Dakar, Abuja, Johannesburg, Nairobi and Washington DC. The Minister is proposing to review the tax-free threshold from ZW$5 000 (US$61) per month to ZW$10 000 (US$122) per month and the bonus tax-free threshold from ZW$5 000 to ZW$25 000 (US$305). Please click here for the 2021 National Budget Statement. Can SA Take Another Blow After Moody's Downgrade? Economy estimated to contract by -4.1% in 2020, reflecting weak demand due to necessary lockdown. These are some of the highlights of the budget: ZW$46.3bn will be allocated to agriculture with the hope of growing the sector to a US$8.2bn (R124.83bn) industry; The teams will cover various places in Zimbabwe as follows: Team A Prof Ncube said recent shocks in the form of droughts, cyclones and the Covid-19 pandemic, have undermined Zimbabwe’s efforts to build physical infrastructure and delivery of planned public services, hence the need to build resilience. The African Union (AU) Declaration of 2009 stipulates that African countries must spend at least 9,6% of GDP on infrastructure. Download File: 2021 National Budget Speech.pdf. Except where otherwise noted, content on and from this site is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. In his 2021 National Budget outline last Thursday, the Minister of Finance and Economic Development, Professor Mthuli Ncube, reiterated the need to urgently revive Zisco and announced a … Finance Minister Mthuli Ncube is expected to present the 2021 National Budget on Thursday this week. Zimbabwe and regional technology news and updates. Finance minister Mthuli Ncube presented the 2021 National Budget to parliament on November 26. The budget … Out of the ZW$421,6 billion budget, capital expenditures constitute ZW$131,6 billion (US$1,6 billion) (5,5% of GDP), while recurrent expenditures are expected to consume ZW$290 billion (US$3,5 billion) (12,1% of GDP) with employment costs projected at ZW$142,6 billion (US$1,74 billion) (5,9% of GDP). This is critical if we are to increase aggregate demand in the economy. Gender, Economic Policies and Public Finance (GEPPF) 1. The Zimbabwe Women’s Resource Centre and Network (ZWRCN) is a non- governmental organization committed to promoting women’s social and economic justice in Zimbabwe and globally, ... 2021 National Budget Highlights 2021 National Budget Highlights. Get the latest in African news delivered straight to your inbox. on November 26, 2020. The increase in sin taxes is a welcome development. The Minister announced compensation for losses incurred during the currency reform process undertaken last year. No country can prosper without a healthy citizenry. The reason for the postponement, as the Speaker … To complete the process, please follow the instructions in the email we just sent you. Water and sanitation on the other hand, received an allocation of about ZW$2,4 billion (US$29,3 million) which constitutes about 0,2% of GDP, down from 0,7% of GDP in 2020. Zimbabwe 2020 National Budget . Positive measures that are aimed at enhancing local capacity include: a fertiliser manufacturers' rebate, whereby raw materials used in the production process will be imported tax and duty free by approved manufacturers; the expansion of the list of materials that qualify for importation under the shoe manufacturers rebate; the extension of the suspension of duty on motor vehicles used by safari and tour operators; and the directive that motor vehicles for use by line ministries and government departments be purchased from local assembly plants. Last week, two important 2021 budget formulation milestones were achieved namely; Public Hearings on the 2021 Budget and the release of the 2021 Pre Budget-Strategy Paper [1].The 2021 Pre Budget Strategy paper themed, “ Building Resilience and Economic … Industrialists welcome Mthuli Ncube’s 2021 Budget. Read the original article on Zimbabwe Independent. High tax rates encourage tax evasion and force small businesses to go/remain, informal. Tinashe Kairiza A week before the budget announcement, Ncube presented a precursor to it, an economic blueprint dubbed the National Development […] The Finance minister of Zimbabwe announced the 2021 Budget. Ethiopia PM's Battle for Control Comes at Huge Cost to Country. This is highly unsustainable. Speaking during a Pre-Budget seminar minister of Defence Oppah Muchinguri-Kashiri said her ministry was underfunded in the previous budget. It is an instrument of resource allocation in order to ensure not just a rapid pace of GDP growth, but also the achievement of important development imperatives such as price stability, employment creation and poverty reduction. Mr Musarara “I … Furthermore, the minister is proposing to adjust the tax bands to begin at ZW$10 001 and end at ZW$250 000 per month, above which the highest marginal tax rate of 40% will apply. The economy is projected to grow by 7,4% in 2021 up from -4,1% in 2020, while annual inflation is projected to average 135%. Donors are projected to provide about US$496 million towards health in 2021, far more than what the government has allocated. Zimbabwe's Minister of Finance and Economic Development presented the 2021 National Budget Statement to Parliament on 26 November 2020. AllAfrica is a voice of, by and about Africa - aggregating, producing and distributing 900 news and information items daily from over 130 African news organizations and our own reporters to an African and global public. COVID-19 pandemic hit an economy already dealing with devastating impacts of climatic shocks of drought, Cyclone Idai and Cyclone Kenneth. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct. Foreign Currency Auction market system is central in bringing stability to foreign exchange market. This is below the Social Policy for Africa (2008) benchmark of at least 4,5% of GDP. There was a problem processing your submission. The 2% intermediated money transfer tax stays, but the tax-free threshold is now ZWL$100, from ZWL$20 previously. AS Finance minister Mthuli Ncube presents the 2021 National Budget this Thursday, many locals say they were expecting government to dump its traditional bias towards security ministries in … THE 2021 national budget due to be presented this afternoon presents one of the toughest challenges for Finance minister, Mthuli Ncube. Save my name, email, and website in this browser for the next time I comment. HARARE - Finance and Economic Development Minister, Mthuli Ncube on Thursday tabled a Z$421 billion (US$5.14 billion) budget for 2021 which has raised serious concerns as some of it's key highlights pile more misery to the already suffering ordinary citizens. We are open for Business from 8:00hrs to 16:30hrs, every Monday to Friday except Public Holidays. Minister of Finance & Economic Development. This is expected to worsen on account of the Covid-19 pandemic. Year on year inflation is projected to reach 9% by the end of 2021. The Minister of Finance and Economic Development will present the 2021 National Budget Statement and the 2021 Estimates of Expenditure in the National Assembly next week, on Thursday 26th November. To address comments or complaints, please Contact us. +263 24 2794571-9 or email: feedback@zimtreasury.gov.zw. On the other hand, the Ministry of Defence was allocated ZW$23,8 billion (US$291 million) (5,65% of the Budget), while the Ministry of Home Affairs was allocated ZW$23,6 billion (288 million) (5,6% of the Budget). Please try again later. AllAfrica publishes around 900 reports a day from more than 130 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. This would help to enhance confidence in the financial sector. In fact, the country must urgently establish a National Health Insurance Fund that is publicly funded through a combination of sin taxes as well as sugar taxes to ensure primary health care to every Zimbabwean. Agriculture was less affected as the summer cropping season was almost over when the pandemic hit. Currently, only about 7% of Zimbabweans have access to medical insurance and this is too low. The 2021 National Budget is based on the theme "Building Resilience and Sustainable Economic Recovery". 19 October 2020. A basic stylised fact of economics is that, the higher and the more the taxes, the higher the levels of informality. The maximum payable by corporates is now ZWL$25,000 from ZWL$15,000 currently for transactions above ZWL$1.25 million. Prof. Mthuli Ncube Minister of Finance and Economic Development Biti's Sensational Take On State of the Economy, Artisanal Miners Reduced to Burrowing Animals, Poor Macro-Economic Conditions Impact On Access to Food - Fewsnet, Economist Reviews National Development Strategy 1, Chiwenga, Nurses Headed for Another Legal Showdown, Growing Demand for Evs, Prospects for Zim's Lithium, More Than Business As Usual Needed to Save Wildlife, People From Covid, Nestlé Zim Set to Up Production By 30 Percent, 'Auditor-General Counsel Hardly Implemented', Following Live Soccer From Virtually Any Match in the World, Investor Protection Mechanisms in the Capital Market. Zimbabwe 2020 National Budget Budget Highlights and Tax Summary 14 November 2019. Shifts on Western Sahara, Forbes Africa Names Top 10 Richest African Artists. It is that time of the year once again when the Parliament of Zimbabwe conducts the national budget consultations in selected parts of the country to gather people’s views and aspirations on the National Budget. In terms of vote allocations, Primary and Secondary Education was allocated the highest share at 13,1% down from 13,3% in 2020, followed by Health and Child Care at 13% up from 10,1% in 2020, and then Agriculture at 11% down from 17,5% in 2020. However, the revenues raised through these sin taxes must be earmarked to the health sector. One of the reasons why businesses choose to be informal is because of the onerous tax regime which increases the cost of compliance thereby disincentivising informal businesses from formalising. Out of the ZW$421,6 billion budget, capital expenditures constitute ZW$131,6 billion (US$1,6 billion) (5,5% of GDP), while recurrent expenditures are … Also given the rising incidence of non-communicable diseases (NCDs) in the country, this should help to put a check to that. This site uses Akismet to reduce spam. The Official Website of the Ministry of Finance and Economic Development of Zimbabwe. THE 2021 NATIONAL BUDGET SPEECH “Building Resillience and Sustainable Economic Recovery” Presented to the Parliament of Zimbabwe. Empirical and case study evidence from many countries suggests that tax compliance rates rise as tax rates fall. We are open for Business from 8:00hrs to 16:30hrs, every Monday to Friday except Public Holidays. Government’s response aimed at ensuring strong economic recovery building on the milestones from the Transitional Stabilisation Programme (TSP) and targeting additional support measures to cushion vulnerable households. Introduction . The national budget essentially entails the use of government spending and taxation to influence the economy. The government of Zimbabwe has started processes to develop the 2021 National Budget. Professor Mthuli Ncube. The National Budget comes at a time when the country has achieved some measure of stability on the foreign exchange markets as well as on the inflationary front, thereby providing an important basis for growing the economy. Learn how your comment data is processed. On a positive note, the 2021 National Budget has clear employment creation and poverty reduction targets. Countries that invest a lot on health do better economically than countries that invest little. Govt to resuscitate Zimbabwe Agricultural Exchange. The theme for the 2021 budget is “Building Resilience and Sustainable Economic Development”. 2021 National Budget Speech. T HE 2021 National Budget must provide a clear government position on the Extractive Industries Transparency Initiative (EITI), including steps that the government will undertake to implement EITI or its local version, the Zimbabwe Environmental Law Association (Zela) has said.. Check your inbox or spam folder now to confirm your subscription. The Tax Relief measures in the 2021 National Budget didn't go far enough as Zimbabweans are struggling to survive because of the COVID19 pandemic Analysis - ZIMBABWE'S 2021 national budget will be presented this November, with a lot at stake in terms of improvements in public service delivery from the government. ICOD Zimbabwe represents more than 3000 women and women with disabilities and is present in Masvingo and Midlands provinces of Zimbabwe. This compensation is targeting small and vulnerable depositors, who had US$1 000 and below, for the exchange rate movement loss from US$1:RTGS$1 to US$1:RTGS$2,5, with resources equivalent to US$75 million. The per capita health allocation is ZW$3 680,64, which is about US$45 up from about US$30 in 2020. Government is projecting to spend not more than ZW$421,6 billion (US$5,1 billion) in 2021 (17,6% of GDP) up by 160% from a projected ZW$162,4 billion (US$1,98 billion) in 2020. Economy expected to rebound by 7.4% in 2021 from consecutive 2-year downturn. By. Highlights From the Zimbabwe 2020 National Budget courtesy of newZWire. Government reprioritised budget allocations and announced $18.2 billion Stimulus Package to save lives and livelihoods. ... Confederations of Zimbabwe Industries (CZI) president, Henry Ruzvidzo urged government to review its tax system in the forthcoming fiscal statement and make it less straining for local companies. 2021 National Budget: The good, the bad and the ugly Posted on December 4, 2020 by The Zimbabwe Independent in Opinion A national budget can be defined as a statement of government’s estimated revenue and proposed expenditure for the year. We are located at the 4th Floor, Block E, New Government Complex, Corner Samora Machel and Fourth Street, Harare, Zimbabwe. Our Work. These sin taxes which are essentially a consumptive tax on "demerit goods" are less "distortionary" and they will also help government to mobilise additional revenues. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. Budget Speech in National Assembly – Thursday 26th November. 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