Zimbabwe: Tax measures in 2022 budget

The budget also includes certain tax relief proposals.

The budget also includes certain tax relief proposals.

The budget for 2022 (presented 25 November 2021) includes the following revenue-raising proposals.

Mining royalties

  • Ability to deduct mining royalties expanded to include financial institutions
  • Changes to the calculation of the royalty for PNG metals, gold, and diamonds 

Value added tax (VAT)

  • A revised definition of “tax invoice” or “fiscal tax invoice” regarding a tax invoice produced by a registered operator and printed by a fiscalised electronic register or fiscal memory device used by a registered operator
  • A rule that tax invoices generated before 31 December 2021 may be claimed no later than 31 March 2022
  • Tax clearance certificates not to be issued to non-compliant taxpayers

Customs duty

  • Introduction of 5% levy on the value of imported dairy products
  • 20% of the net premiums collected on motor vehicle insurance for foreign-registered vehicles to be used for assisting road accident victims
  • Pre-owned motor vehicles no longer eligible to be placed in bonded warehouses
  • For pre-owned motor vehicles currently held in bonded warehouses, customs duty to be paid by 31May 2022

Excise tax (duty)

  • Estimated assessments for non-declaration or false declaration of excise duty or surtax on manufacturing of commodities
  • Increase excise tax to 25% (from 20%) on cigarettes
  • Introduction of flat rate of excise tax on energy drinks
  • Excise tax on telephone, airtime, data, and pre-owned motor vehicles

Capital gains tax

  • Amendments to tax calculation for certain assets
  • Restrictions on the deductions for capital gains tax


The budget also includes certain tax relief proposals such as income tax benefits for donations made to medical institutions and a tax credit with regard to the employment of physically challenged individuals.

Read a November 2021 report [PDF 370 KB] prepared by the KPMG member firm in Zimbabwe 

 

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