Chronicle Editor
Judith Phiri, Business Reporter
The Minister of Finance, Economic Development, and Investment Promotion, Professor Mthuli Ncube, has acknowledged and praised the vibrant public discussions surrounding the 2024 budget proposals.
He emphasised that the debates played a significant role in shaping the numerous amendments that have been made to the budget, saying it goes to prove to all and sundry that they were a listening Government.
The National Assembly last Friday passed the two budget Bills, the Appropriation Bill and the Finance Bill after intense debate regarding the proposals that were presented by Prof Ncube.
The Finance Bill, deals with taxation changes and other revenue matters, and the Appropriation Bill gives permission to the Government to spend, as detailed in the estimates of expenditure.
Some of the amended sections were the wealth tax of one percent on residential property by increasing the point where the tax cuts in to US$250 000 from US$100 000, decreasing the age when exemption starts to 65, exempting the primary residence of the taxpayer and placing a limit of US$50 000 a year on the tax from any individual.
Announcing the 2024 National Budget last month, the Minister had proposed that the wealth tax whereby any owner of a property valued at a minimum of US$100 000 is subject to 1 percent tax starting next year. The tax was supposed to be an annual charge to be paid over a 12-month period.
In an interview yesterday on the sidelines of the Matabeleland South Investment Forum at Blue Hills Camp, Umzingwane District, the Minister applauded the contribution of the public and Members of Parliament to the amendment.
“The 2024 National Budget was passed in the National Assembly, Lower House early morning yesterday (Friday). It went through a robust debate. I was happy with the debate in the public forums and also very pleased with the quality of debate in Parliament, the chairpersons of the committees also consulted the public.
“When I look at it, I think this is probably one budget, in my last five years as Minister, where the public has shown a lot of interest and have contributed to certain amendments and changes which I welcome. What we did in the end, we amended some of the taxes in response to what the Honourable Members and the public were proposing,” he said.
The Minister revealed that some of the amendments also included limiting and capping the maximum amount that anyone has to pay as wealth tax to no more than US$50 000 and also lowered the exemption age from 70 to 65 in line with the Government retirement age.
He said those living in their primary residence were also exempted and they should not pay any tax.
On the toll fees, Prof Ncube said it was debated in the end where Members of Parliament moved that the proposed increase should be reduced.
“It then came down to 50 percent as opposed to 100 percent. The public transporters and buses are exempted from this extra increase. On passports, we reduced the increase and only added another US$30. Ordinary passports will be US$150, but the express 24 hours passports that one is still a premium passport it was raised to US$250 those who need that kind of passport typically they can afford it and of course we know there are outlier emergencies.”
The Minister said the public’s contributions were critical to the various amendments, and once it is passed by Parliament, it was now their job to implement what has been decided and the process was to be completed in full through the Senate debate.
“Once they have endorsed it, it goes to the President for signing off, then it becomes law and it is implemented. I am pleased that there is an acceptance in Parliament and by the public. At the end of the day we need to mobilise more domestic resources and this is critical to support our own development as a country.
“That is what this budget is all about so that we can consolidate the economic transformation that we started. It is clear that this budget is pro-poorer and pro-people given what we are going to do with the resources in the sense of supporting social protection programmes,” he said.
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