Government will soon lower tax brackets for various economic players as an incentive to encourage investment in the country and grow the tax base. Addressing Zimbabweans and investors in Namibia on Monday where he had accompanied President Mnangagwa on a working visit, Finance and Economic Planning Minister Patrick Chinamasa, conceded the country had a higher tax regime.
President Mnangagwa’s administration has placed economic recovery high on it’s agenda and has been on an offensive creating an environment that promotes business growth as well as luring new investment.
Responding to contributions from participants that the country was losing out on investment opportunities due to comparatively higher taxation, Minister Chinamasa said Government is aware local taxes are high.
Minister Chinamasa, however, said Government is working on lowering the same, a move he said will grow the cake. “Taxation, I agree with you is too high,” said Minister Chinamasa. “It’s a matter that we are going to address so that we can proceed to a position where we get more taxes from more volumes,” he said.
Despite slow growth of the economy in 2017, the Zimbabwe Revenue Authority (Zimra), managed to meet its annual revenue target that played a part in reducing the country’s budget deficit.
With an annual target of $3,4 billion, Zimbabwe in 2017 recorded its highest revenue receipts with a gross total of $3,978 billion that translated to $3,75 billion in net collections. The collections for the year were 17 percent higher than what had been targeted for.
The target for 2018 has, however, been revised by 26, 47 percent to $4,3 billion and Zimra has promised to upscale and redouble its efforts not only to achieve, but to surpass the target. President Mnangagwa also used the same meeting to urge Zimbabweans in the diaspora to come back home and play a part in the country’s quest for economic recovery and growth.
The President highlighted investment opportunities in such sectors as mining, agriculture, education, tourism and infrastructure development among other sectors.