LIVE: 2015 national budget

via LIVE: 2015 national budget – DailyNews Live 4 December 2014

HARARE – Below are real-time updates of Finance minister Patrick Chinamasa’s 2015 national budget presentation.

14: 50 – Chinamsa says the “2015 comes at a time when economy is experiencing difficult challenges. Against this, the 2015 budget will reinforce policy.”

Proposing fiscal incentive schemes in the 2015 budget.

He says implementation of ZimAsset requires finances.

Says Zimbabwe’s economic prospects remain weighed down by sanctions.

“Zimbabwe has made progress in strengthening domestic financial market, including building confidence in the banking sector.”

Zimbabwe’s inflation projected to remain below one percent for the rest of the year and low in 2015.

The country’s pricing structure has not been sustainable since dollarisation in 2009 and government is addresing that.

Zimbabwe has a high poverty datum line of $100.58.

Projects 3.2 percent GDP growth in 2015.

Agriculture sector growth projected at 3.4% in 2015.

Mining to decline by 2% in 2014. Sector to grow by 4% in 2015.

Tourism to grow by 4,7 percent this year.

External sector position remains under pressure. 2014 export receipts between January to October 2014 were $2,4 billion.

Exports are projected to grow by 5% to $3,83 billion and imports $6,65 billion in 2015.

Zimbabwe’s total debt position is $8,387 billion.

Chinamasa says FDI has remained subdued due to perceived country risk.

Says financial sector remains “generally stable”.

Govt is addressing issues to restore confidence in the financial sector.

15:13 – Interjections from MPs.

15:15 – Chinamasa continues speech.

Says government is looking into the insurance and pensions industry in areas such as capital compliance and benefit remittences.

VAT and PAYE remain the major contributors to government’s revenue.

2014 revenue to close at $3,93 billion 3,9 billion in tax revenue and balance in non-tax revenue.

82% of government’s revenue to October went towards recurrent expenditure.

To mobilise funding govt approved the issuance of bonds by the Infrustructure Development Bank of Zimbabwe.

$140 million bonds issued so far.

Total commitments to ZimFund, managed by African Development Bank, stood at $144,5 million.

Recurrent expenditure to dominate leaving about 8% for capital expenditure.

Proposes $4,1 billion budget for 2015.

$3,32 billion – 81 percent – will account for salaries.

Expects developmental assistance of $390 million.

Alllocates $10,5 million for the Constituency Development Fund bill to address transperency.

Allocates $400 000 for cloud seeding in preparation of 2014/15 season.

Setting up a $40 million facility for agriculture support services.

Allocates start up capital for the Sovereign Wealth Fund.

Set to present a paper on Special Economic Zones to Cabinet targeted at improving value addition.

Roads dualisation to be completed by the end of the year.

Govt focusing on upgrading Vic Falls and Harare airports.

Govt devoting resources for buiding universities and tertiary infrastructure.

Admits that economy is being dragged down by liquidity crisis on the back of company closures among other challenges.

Says cumulative company closures between 2011 and 2014 were 4 610 with 55 443 employees affected.

51/49 empowerment structure applies across all sectors.

The indigenisation plans will take note of circumstances in respective sectors in conjunction with line ministries.

Extends duty free facility for milk powder.

Extends wheat flour imports quarter by 12 months from January 2015.

Extends duty rebates facility for tourism capital goods for 12 months.

Bottler grade sugar duty suspension extended for six months.

Proposes to increase duty on eletrical cables with effect from January 2015.

Between January to October imports of $5,3 billion dominated by non-essential products were imported.

Proposes to introduce “specific customs duty” to curb imports on non-essentials.

To introduce export incentive schemes for companies that export to encourage exports.

Proposes lower corporate tax for exporters.

Proposes to exempt agency fees to encourage exporters to secure markets.

Removes royalties on licenced local diamond cutters and polishers to promote beneficiation and value addition.

Govt to come up with a new mining tax regime by March 2015.

Increases excise duty on cigarettes from $15 per 1 000 sticks to $ per 1 000 sticks with effect from December 2014.

Introduces tobacco levy of 0.015 of each dollar of selling price on growers with effect from January 2015.

Tax free threshold increased to $300 from the current $250.

Extends tax amnesty period from 6 months to 15 months.

Reduces excise duty on clear beer to 40% from 45% with effect from January 1, 2015.

Proposes that Zinara collects presumtive tax from transport operators.

Special excise duty on airtime to be levied on licenced operators to avoid double taxation.

16:40 – Chinamasa finishes his presentation.