This week I decided to take a break from writing about mid-term fiscal policy issues knowing very well some of these issues might be changed. Going through some of my work for the month of July 2019, I thought I should air my views on the issue of prescription period. That month alone I handled about three tax cases involving the Commissioner lifting immunity on the prescription period. Prescription is about rights that have come into existence but have ceased to exist by the passage of time. A ...
Alarming increase in the motoring benefit
The 2019 supplementary budget has seen the Minister of Finance and Economic Development review most monetary amounts in the tax and customs laws in line with inflation and exchange rate developments in order to maintain their economic importance to the business. The minimum taxable income for employees was raised by 100% to ZWL700. Whilst those driving cars should brace up for more taxes as the motoring benefit was increased by a shocking percentage. Alas, some are likely to go home with a nega ...
Capital Gains Tax regime better but distortions still exist
The Minister of Finance and Economic Development Professor Mthuli Ncube presented the Mid Term Fiscal Policy on the 1st of August 2019. Before the budget, I expected him to address the potential capital gains tax distortions arising from the conversion of United States balances into RTGS$ on a one-to one basis through SI33 and to deal with the form of currency for purposes of remitting taxes to the ZIMRA following the banning of foreign currency through SI142. Of these two issues, the Mini ...