Business
Breaking news – Chronicle
Sikhulekelani Moyo, [email protected]
NATIONAL Railways of Zimbabwe Contributory Pension Fund (NRZCPF) has launched the Revitus Real Estate Investment Trust (REIT) which is meant to draw funds from investors in a bid to revitalise some of its old properties.
NRZCPF is the largest owner of major office buildings in the Central Business Districts (CBDs) of the major cities in the country.
The Revitus is expected to be listed in December.
A REIT is a regulated investment vehicle under the Collective Investment Scheme Act that enables the issuer to pool investors’ funds for the purpose of investing in real estate.
In exchange, the investors receive units in the trust, and as beneficiaries of the trust, share in the profits or income from the real estate assets owned by the trust.
Speaking during the launch in Bulawayo yesterday, NRZCPF chairperson Mr Takunda Madanha said it was an opportunity for the fund to raise external funding and co-invest with like-minded pension funds and other investors to revive the selected buildings that were seeded into the REIT.
He said the Fund also needs to enhance the pension benefits of its members by improving the rental earning capacity and values of the underlying buildings.
“Over time, changes in economic dynamics and social patterns have resulted in most CBDs losing their lustre and a number of buildings starting to experience low occupancies as most companies start moving out of the CBD.
“At the same time, a new opportunity is emerging for urban re-generation to take advantage of new economic and social patterns which have created new pockets of demand for CBD properties,” said Mr Madanha.
The Fund is working with Datvest, a CBZ arm which is into asset management.
In a presentation made on his behalf by fund manager Mr Brighton Mutengwede, Datvest managing director Mr Tendai Muzadzi said NRZCPF intends to sell a total of 121 378 791 units in the Revitus REIT at an offer price of $400 per unit by way of an offer for units to the investing public.
At the conclusion of the Initial Public Offer (IPO), it is envisaged that the units will be listed on the Zimbabwe Stock Exchange (ZSE).
“The funds are meant for the renovation and revitalisation of portfolio properties in order to enhance their income-generating capacity thus enhancing the pension benefits for NRZCPF members through uplifting the values of the underlying property portfolio.
“The opening date for the offer is November 16, 2023, the closing date for the offer is December 7, 2023 and the listing date for the offer is December 15, 2023,” he said.
The REIT is starting with four properties that are Africa House and Pioneer House in Bulawayo and Atlas House and Electra House in Harare.
The Revitus REIT will be the second REIT to be listed at the ZSE following Tigere which was listed last year.
Mid this year, ZSE launched the REIT Association of Zimbabwe, which is meant to promote the growth in the real estate sector.
In his remarks, ZSE chief executive officer Mr Justin Bgoni said Zimbabwean capital markets have seen a growth of interest in the instrument, and the listing of the Revitus REIT is a welcome development to the market.
He said exemption from income tax is a major attraction to potential investors and that increases investment funds channeled towards REITs.
Mr Bgoni said some of the benefits include access to new investors/capital, sharing of risks, liquidity and compliance.
“As the Revitus REIT IPO is launched, we are excited that our retail investors will also be able to subscribe to the units through our online trading platforms or their respective stock brokers.
“It is also commendable that despite the challenging macroeconomic environment, we are witnessing the growth of new products on our market,” he said.
“The Revitus REIT will become the second REIT on our exchange. The ZSE management and staff are working with various potential REIT issuers and we look forward to it being the next source of new listings together with additional ETFs that will come onto the market.”
In her speech read on her behalf by Mr Patrick Gombe, Insurance and Pensions Commission Commissioner Dr Grace Muradzikwa said the Commission is impressed with this new innovation and development given the limited investment options that were available for different investors to find alternative assets for new and incoming contributions.
She said IPEC is confident that the REIT will assist in regaining confidence in the pensions industry through widening investment options for pensions amongst other benefits. — @SikhulekelaniM1
Business
Mthuli squeezes consumers, businesses – NewsDay
In his 2024 national budget presentation in Parliament, Finance minister Mthuli Ncube increased taxes to raise an additional ZWL$10 trillion to meet the new revenue targets.
GOVERNMENT yesterday announced a cocktail of tax increases, pushing up the cost of living and ease of doing business after reviewing its 2024 revenue projection upwards by 22,22% to ZWL$53,9 trillion.
In his 2024 national budget presentation in Parliament, Finance minister Mthuli Ncube increased taxes to raise an additional ZWL$10 trillion to meet the new revenue targets.
Treasury initially projected revenue collections to total ZWL$44,1 trillion for the 2024 fiscal year.
“Mr Speaker Sir, in line with the projected economic growth of 3,5%, total revenue collections in 2024 are estimated at ZWL$53,9 trillion, (18,3% of GDP), broken down as ZWL$51,2 trillion tax revenue and ZWL$2,7 trillion non-tax revenue,” Ncube said.
“Guided by the expected revenue envelope and the desired fiscal path, expenditures in 2024 are projected at ZWL$58,2 trillion (19,8% of GDP).”
Ncube announced an upward review on the Strategic Reserve Levy by US$0,03 and US$0,05 per litre of diesel and petrol, respectively, with effect from January 1, 2024, pushing up the cost of fuel.
Ncube also raised tollgate and passport fees beginning next year.
“I, therefore, propose an upward review of toll fees on premium roads, that is, Harare-Beitbridge and Plumtree-Mutare and other roads, with effect from January 1, 2024. Revenue derived from the increased fees will be remitted to the Consolidated Revenue Fund,” Ncube said.
“I, further, propose that passport and selected fees charged by the Central Vehicle Registry be increased, with effect from January 1, 2024. Additional revenue generated from the above measures will be ring-fenced towards road infrastructure development.”
Ncube also introduced a US$0,02 levy per gramme of sugar contained in beverages, a development that will push up the prices of beverages.
He said the move was in response to growing concerns on the adverse effects of the consumption of sugar contained in beverages. Tax on beverages has also been implemented in a number of countries, including in the Southern African Development Community.
Ncube also introduced a new wealth tax to ensure that high-income earners pay taxes.
“In order to ensure that every person contributes to the fiscus in line with their levels of income. I propose to introduce a wealth tax levied at a rate of 1% of market values of residential properties with a minimum value of US$100 000,” he said.
“Resources derived from the levy will be ring-fenced towards urban infrastructure development, in particular roads, water, sewer and community health centres. Principal private residential properties owned by elderly persons above 70 years will, however, be exempt from the tax.”
While the minister reviewed the tax-free threshold on incomes to ZWL$750 000, from the previous ZWL$500 000, inflation has rendered the move mute because of the rising cost of living.
Ncube also targeted foreign companies by introducing the domestic minimum top-up tax (DMTT).
The tax ensures that qualifying entities located in Zimbabwe with an aggregate effective tax rate below 15% be charged a top-up amount, raising the cost of doing business.
“Under the GloBE Tax Rules, where a tax incentive results in an effective rate of less than 15%, the tax jurisdiction where the multinational is headquartered collects the difference between the effective tax under the tax incentive and the minimum effective rate of 15% (the top-up tax),” Ncube said.
“The DMTT allows the country where the low tax profits arise from the tax incentive to collect the top-up tax rather than ceding taxing rights to the headquarter jurisdiction.”
He said the calculation of the DMTT would be based on the effective tax rate charged on the jurisdictional profits, not the jurisdictions’ statutory corporate income tax.
“I, therefore, propose to enact DMTT rules to guard against ceding taxing rights to foreign jurisdictions on top-up tax arising from tax incentives that are provided to those investments,” Ncube said. The corporate tax rate was also reviewed upwards to 25% from 24%.
Ncube, however, reduced the mandatory value added tax (Vat) registration threshold to US$25 000 from US$40 000, starting next year.
Operators with a minimum annual turnover of US$25 000, or local currency equivalent thereof, are now required to register for Vat.
Failure to register will see applicable penalties invoked, Ncube said.
He said traders registered for Vat purposes and in possession of valid tax clearance certificates would be eligible to procure goods from manufacturers.
“The tax deferred will, however, be fixed at the foreign currency amount payable at the time of importation, albeit, payable in local currency at the prevailing exchange rate at the time of importation, albeit, payable in local currency at the prevailing exchange rate at the time of payment.”
Related Topics
Business
Mthuli squeezes consumers, businesses – NewsDay
In his 2024 national budget presentation in Parliament, Finance minister Mthuli Ncube increased taxes to raise an additional ZWL$10 trillion to meet the new revenue targets.
GOVERNMENT yesterday announced a cocktail of tax increases, pushing up the cost of living and ease of doing business after reviewing its 2024 revenue projection upwards by 22,22% to ZWL$53,9 trillion.
In his 2024 national budget presentation in Parliament, Finance minister Mthuli Ncube increased taxes to raise an additional ZWL$10 trillion to meet the new revenue targets.
Treasury initially projected revenue collections to total ZWL$44,1 trillion for the 2024 fiscal year.
“Mr Speaker Sir, in line with the projected economic growth of 3,5%, total revenue collections in 2024 are estimated at ZWL$53,9 trillion, (18,3% of GDP), broken down as ZWL$51,2 trillion tax revenue and ZWL$2,7 trillion non-tax revenue,” Ncube said.
“Guided by the expected revenue envelope and the desired fiscal path, expenditures in 2024 are projected at ZWL$58,2 trillion (19,8% of GDP).”
Ncube announced an upward review on the Strategic Reserve Levy by US$0,03 and US$0,05 per litre of diesel and petrol, respectively, with effect from January 1, 2024, pushing up the cost of fuel.
Ncube also raised tollgate and passport fees beginning next year.
“I, therefore, propose an upward review of toll fees on premium roads, that is, Harare-Beitbridge and Plumtree-Mutare and other roads, with effect from January 1, 2024. Revenue derived from the increased fees will be remitted to the Consolidated Revenue Fund,” Ncube said.
“I, further, propose that passport and selected fees charged by the Central Vehicle Registry be increased, with effect from January 1, 2024. Additional revenue generated from the above measures will be ring-fenced towards road infrastructure development.”
Ncube also introduced a US$0,02 levy per gramme of sugar contained in beverages, a development that will push up the prices of beverages.
He said the move was in response to growing concerns on the adverse effects of the consumption of sugar contained in beverages. Tax on beverages has also been implemented in a number of countries, including in the Southern African Development Community.
Ncube also introduced a new wealth tax to ensure that high-income earners pay taxes.
“In order to ensure that every person contributes to the fiscus in line with their levels of income. I propose to introduce a wealth tax levied at a rate of 1% of market values of residential properties with a minimum value of US$100 000,” he said.
“Resources derived from the levy will be ring-fenced towards urban infrastructure development, in particular roads, water, sewer and community health centres. Principal private residential properties owned by elderly persons above 70 years will, however, be exempt from the tax.”
While the minister reviewed the tax-free threshold on incomes to ZWL$750 000, from the previous ZWL$500 000, inflation has rendered the move mute because of the rising cost of living.
Ncube also targeted foreign companies by introducing the domestic minimum top-up tax (DMTT).
The tax ensures that qualifying entities located in Zimbabwe with an aggregate effective tax rate below 15% be charged a top-up amount, raising the cost of doing business.
“Under the GloBE Tax Rules, where a tax incentive results in an effective rate of less than 15%, the tax jurisdiction where the multinational is headquartered collects the difference between the effective tax under the tax incentive and the minimum effective rate of 15% (the top-up tax),” Ncube said.
“The DMTT allows the country where the low tax profits arise from the tax incentive to collect the top-up tax rather than ceding taxing rights to the headquarter jurisdiction.”
He said the calculation of the DMTT would be based on the effective tax rate charged on the jurisdictional profits, not the jurisdictions’ statutory corporate income tax.
“I, therefore, propose to enact DMTT rules to guard against ceding taxing rights to foreign jurisdictions on top-up tax arising from tax incentives that are provided to those investments,” Ncube said. The corporate tax rate was also reviewed upwards to 25% from 24%.
Ncube, however, reduced the mandatory value added tax (Vat) registration threshold to US$25 000 from US$40 000, starting next year.
Operators with a minimum annual turnover of US$25 000, or local currency equivalent thereof, are now required to register for Vat.
Failure to register will see applicable penalties invoked, Ncube said.
He said traders registered for Vat purposes and in possession of valid tax clearance certificates would be eligible to procure goods from manufacturers.
“The tax deferred will, however, be fixed at the foreign currency amount payable at the time of importation, albeit, payable in local currency at the prevailing exchange rate at the time of importation, albeit, payable in local currency at the prevailing exchange rate at the time of payment.”
Related Topics
Business
Mthuli squeezes consumers, businesses – NewsDay
In his 2024 national budget presentation in Parliament, Finance minister Mthuli Ncube increased taxes to raise an additional ZWL$10 trillion to meet the new revenue targets.
GOVERNMENT yesterday announced a cocktail of tax increases, pushing up the cost of living and ease of doing business after reviewing its 2024 revenue projection upwards by 22,22% to ZWL$53,9 trillion.
In his 2024 national budget presentation in Parliament, Finance minister Mthuli Ncube increased taxes to raise an additional ZWL$10 trillion to meet the new revenue targets.
Treasury initially projected revenue collections to total ZWL$44,1 trillion for the 2024 fiscal year.
“Mr Speaker Sir, in line with the projected economic growth of 3,5%, total revenue collections in 2024 are estimated at ZWL$53,9 trillion, (18,3% of GDP), broken down as ZWL$51,2 trillion tax revenue and ZWL$2,7 trillion non-tax revenue,” Ncube said.
“Guided by the expected revenue envelope and the desired fiscal path, expenditures in 2024 are projected at ZWL$58,2 trillion (19,8% of GDP).”
Ncube announced an upward review on the Strategic Reserve Levy by US$0,03 and US$0,05 per litre of diesel and petrol, respectively, with effect from January 1, 2024, pushing up the cost of fuel.
Ncube also raised tollgate and passport fees beginning next year.
“I, therefore, propose an upward review of toll fees on premium roads, that is, Harare-Beitbridge and Plumtree-Mutare and other roads, with effect from January 1, 2024. Revenue derived from the increased fees will be remitted to the Consolidated Revenue Fund,” Ncube said.
“I, further, propose that passport and selected fees charged by the Central Vehicle Registry be increased, with effect from January 1, 2024. Additional revenue generated from the above measures will be ring-fenced towards road infrastructure development.”
Ncube also introduced a US$0,02 levy per gramme of sugar contained in beverages, a development that will push up the prices of beverages.
He said the move was in response to growing concerns on the adverse effects of the consumption of sugar contained in beverages. Tax on beverages has also been implemented in a number of countries, including in the Southern African Development Community.
Ncube also introduced a new wealth tax to ensure that high-income earners pay taxes.
“In order to ensure that every person contributes to the fiscus in line with their levels of income. I propose to introduce a wealth tax levied at a rate of 1% of market values of residential properties with a minimum value of US$100 000,” he said.
“Resources derived from the levy will be ring-fenced towards urban infrastructure development, in particular roads, water, sewer and community health centres. Principal private residential properties owned by elderly persons above 70 years will, however, be exempt from the tax.”
While the minister reviewed the tax-free threshold on incomes to ZWL$750 000, from the previous ZWL$500 000, inflation has rendered the move mute because of the rising cost of living.
Ncube also targeted foreign companies by introducing the domestic minimum top-up tax (DMTT).
The tax ensures that qualifying entities located in Zimbabwe with an aggregate effective tax rate below 15% be charged a top-up amount, raising the cost of doing business.
“Under the GloBE Tax Rules, where a tax incentive results in an effective rate of less than 15%, the tax jurisdiction where the multinational is headquartered collects the difference between the effective tax under the tax incentive and the minimum effective rate of 15% (the top-up tax),” Ncube said.
“The DMTT allows the country where the low tax profits arise from the tax incentive to collect the top-up tax rather than ceding taxing rights to the headquarter jurisdiction.”
He said the calculation of the DMTT would be based on the effective tax rate charged on the jurisdictional profits, not the jurisdictions’ statutory corporate income tax.
“I, therefore, propose to enact DMTT rules to guard against ceding taxing rights to foreign jurisdictions on top-up tax arising from tax incentives that are provided to those investments,” Ncube said. The corporate tax rate was also reviewed upwards to 25% from 24%.
Ncube, however, reduced the mandatory value added tax (Vat) registration threshold to US$25 000 from US$40 000, starting next year.
Operators with a minimum annual turnover of US$25 000, or local currency equivalent thereof, are now required to register for Vat.
Failure to register will see applicable penalties invoked, Ncube said.
He said traders registered for Vat purposes and in possession of valid tax clearance certificates would be eligible to procure goods from manufacturers.
“The tax deferred will, however, be fixed at the foreign currency amount payable at the time of importation, albeit, payable in local currency at the prevailing exchange rate at the time of importation, albeit, payable in local currency at the prevailing exchange rate at the time of payment.”
Related Topics
Mliswa demands answers on Munatsi’s death, questions silence two years since mysterious fire
Premier League news live: Latest updates from today’s press conferences and weekend preview – The Athletic
Breaking news – Chronicle
Book Review-The Day Salisbury Fuel Tanks were set ablaze, December 11, 1978
A NEW BOOK AVAILABLE AT: SAM LEVY VILLAGE – BOOK BAZAAR | THE DAY SALISBURY FUEL TANKS WERE SET ABLAZE ON DECEMBER 11 – 1978 | ZIMBABWE’S INVALUABLE HISTORIC TREASURE
UK: Zimbabwe-born Vee Kativhu makes list of 100 most influential … – New Zimbabwe.com
-
About Us2 months agoBook Review-The Day Salisbury Fuel Tanks were set ablaze, December 11, 1978
-
About Us2 months agoA NEW BOOK AVAILABLE AT: SAM LEVY VILLAGE – BOOK BAZAAR | THE DAY SALISBURY FUEL TANKS WERE SET ABLAZE ON DECEMBER 11 – 1978 | ZIMBABWE’S INVALUABLE HISTORIC TREASURE
-
education1 week agoUK: Zimbabwe-born Vee Kativhu makes list of 100 most influential … – New Zimbabwe.com
-
Entertainment news5 days agoWar vets, minister lock horns – NewsDay
-
Business1 month agoWho Is Who On Zimbabwe Digital Wall Of Fame | New Book Release !!!!!!!!!
-
education2 weeks agoMSU honours Prof Bhebe – The Herald
-
agriculture3 weeks agoYouths key to reducing Kariba overfishing: FAO – NewsDay
-
Business5 days agoLetter to my people: Desperation for validation has reached comic … – The Standard – Zimbabwe