2019 Budget Highlights 

Source: 2019 Budget Highlights – DailyNews Live

STAFF WRITER      23 November 2018

HARARE – Finance minister Mthuli Ncube has presented the National Budget
Statement for 2019.

See budget highlights below:

o  Budget deficit of $1,57 billion or 5 percent of GDP;

o  Growth in 2019 at about 3,1 percent (driven by mining, distribution,
hotels and restaurants, transport and communication and agriculture);

o  Inflationary pressures to stabilise in 2019;

o  Total revenues for 2019 projected at $6,6 billion;

o  Total expenditures for 2019 projected at $8,16 billion;

o  Extension of suspensions and rebate of duty facilities to various

o  Increase excise duty on cigarettes from $20 to $25 per 1 000 sticks;

o  Introduce customs duty on motor vehicles and other selected goods in
foreign currency;

o  Companies that collect VAT or any other taxes in US$ or any other
currency to remit VAT using the same mode of payment;

o  Increase Excise Duty by 7 cents per litre on diesel & paraffin and 6,5
cents on petrol to reduce the arbitrage opportunities;

o  Review the tax-free threshold from $300 to $350 and further widen the
tax bands from $351 to $20 000, above which income is taxed at the highest
marginal tax rate of 45 percent;

o  Provide for further exemptions from the 2 percent Intermediated Money
Transfer Tax;

o  Suspend customs duty and also exempt from VAT, sanitary wear products
for a period of 12 months;

o  Suspension of customs duty on selected goods used by the
physically-challenged persons;

o  Redirect 5 percent of Third Party Insurance Cover to an Accident
Compensation Fund;

o  Government ministries and departments to remit all revenue collected
into the Consolidated Revenue Fund