Budget raises PAYE, bonus tax-free thresholds
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has raised tax and bonus tax-free thresholds in a bid to provide much-needed relief to ordinary Zimbabweans whose incomes have been eroded by inflation.
Unveiling the 2024 National Budget that largely reflects the Government’s commitment to fostering a more equitable society at the new Parliament today, Minister Ncube proposed the new tax thresholds would be effective from January 1, 2024, while the bonus tax-free threshold would take effect from November 1, 2023.
The 2024 Budget, themed “Consolidating Economic Transformation,” builds on socio-economic achievements that have been made over the past five years and seeks to place the country on a solid foundation for further development and growth.
Under the proposed changes, the monthly tax-free threshold would be increased from $500 000 to $750 000, resulting in an annual tax-free threshold of $9 million.
Minister Ncube also proposed to adjust the tax bands, with the highest tax rate of 40 percent applicable to annual income exceeding $270 million. Regarding the local currency bonus tax-free threshold, he proposed to increase it from $500 000 to $7,5 million.