Business
High level UAE delegation arrives for key engagements – The Herald
Mukudzei Chingwere and Ivan Zhakata
THE Government of the United Arab Emirates (UAE) has taken note of Zimbabwe’s re-engagement and investment promotion drive and deployed to Zimbabwe a high powered delegation from the office of the Vice President and Prime Minister Sheikh Mohammed Bin Rashid Al Maktoum to enhance relations and seal cooperation agreements in various economic sectors.
This was revealed by Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere after yesterday’s Cabinet meeting.
President Mnangagwa has personally been at the forefront of that investment drive aimed at unlocking the full potential of the economy for the benefit of the citizenry through his “Zimbabwe is open for business” mantra.
“The Minister of State for Presidential Affairs in the Office of the President and Cabinet informed Cabinet that the Government will be hosting a delegation from the Office of His Royal Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, UAE,” said Dr Muswere.
“The delegation is coming under the auspices of the Memorandum of Understanding on Improvement and Development of Government Services signed between Zimbabwe and the UAE in February this year.
“A major part of MoU is the Government Experience Exchange Programme under which Zimbabwe has agreed to focus on nine areas of reform known as Workstreams.”
Cabinet also received a report on the Saudi–Africa Summit where President Mnangagwa led the Zimbabwean delegation to the first Saudi-Africa Summit hosted by King Salman bin Abdulaziz Al Saud from November 9 to November 12.
Dr Muswere said 54 African countries were represented, with 23 at Heads of State and Government level.
He said several issues of mutual concern were discussed with respect to economic ties, food security, counter-terrorism, combating extremism, humanitarian, health issues and cultural cooperation.
“More than 50 Cooperation Agreements in the fields of political, economic, social and development were signed between Saudi Arabia and African countries.
“Saudi Arabia pledged US$50 billion towards Africa’s Economic Development over the next seven years,” said Dr Muswere.
He said President Mnangagwa also held meetings on the sidelines with President Filipe Nyusi of Mozambique, the Minister of Investment of Saudi Arabia Honourable Khalid Al-Falih and 10 Saudi companies interested in investing in Zimbabwe.
Dr Muswere said Cabinet received another report on the third Intra-African Trade Fair held in Cairo, Egypt from November 9 to November 15 where President Mnangagwa also led the country’s delegation to the Fair.
The Fair’s objective was to create avenues to harness trade and investment opportunities through the Africa Continental Free Trade Area (AfCFTA).
“Zimbabwe, Egypt, Botswana, Malawi, Benin, Chad and two financial institutions (Afreximbank and Arise Integrated Industrial Platforms) signed the Export Agriculture for Food Security Initiative,” said Dr Muswere.
“Afreximbank is committing billions to boost production, processing and intra-African trade in agricultural products and Zimbabwe is expected to benefit from the fund.
“The nation is further informed that His Excellency the President held the following bilateral meetings where issues of mutual interest were discussed: with his counterpart, His Excellency El Sisi, the President of Egypt; Chairman and CEO of Evergreen Private Limited, Dr Adel Almuslimany; and the President of Afreximbank, Professor Benedict Oramah.
“His Excellency the President also had a successful, well attended and interactive engagement with the Zimbabwean diaspora living in Egypt.”
Dr Muswere said Cabinet considered and approved a Memorandum of Understanding between Zimbabwe and Algeria on cooperation in the field of archives.
The Memorandum of Understanding provides for cooperation in the field of archives preservation, restoration, digitisation, indexation and publication.
“The parties will exchange archives, guidebooks and inventories; exchange information in area of archives management; and cooperate in digitising the database of cultural heritage properties on the digitised format and online.
“Cabinet further advises that the parties will exchange experts in the field of archives to share knowledge on modern technologies and restoration activities as well as identify management skills in the two countries.
“Furthermore, the two countries will organise training courses, workshops, seminars and exhibitions on archives and scientific research and studies.
“Regarding intellectual property rights, the parties will jointly own any results from research conducted under the MOU,” said Dr Muswere.
Meanwhile, the delegation from UAE arrived in Harare yesterday evening for the “Zimbabwe Government Experiences Exchange Programme” workshop.
The workshop will run from today to Saturday at the Rainbow Towers Hotel in Harare.
It will focus on seven key topics including policy and strategy, Government services and Government innovation.
The workshop will be attended by Cabinet ministers, deputy ministers, Ministers of State for Provincial Affairs and Devolution, permanent secretaries and other high ranking Government officials.
In a statement, the Chief Secretary to the President and Cabinet, Dr Martin Rushwaya, informed all Cabinet ministers, deputy ministers, Ministers of State for Provincial Affairs and Devolution, chief secretaries, deputy chief secretaries and permanent secretaries that the workshop would be held as planned with the starting time now being 8:30am.
“The Chief Secretary to the President and Cabinet would like to inform ministers, deputy ministers and permanent secretaries that the Government Experience Exchange Forum Workshop will be held tomorrow as planned.
“However, the starting time has been changed to 0830 hours. Members are expected to be seated by 0830 hours, and the venue remains the same,” he said.
The workshop comes as companies from the Middle East have expressed keen interest in investing in the country’s financial, real estate, agricultural, ICT, mining and green energy sectors as Zimbabwe, under the leadership of President Mnangagwa, opens new business frontiers.
The increased interest from several global players to invest in the country is a direct result of the “Zimbabwe is open for business” mantra whose main proponent is President Mnangagwa as well as inroads made in the re-engagement and engagement foreign policy.
Last week, President Mnangagwa led a Zimbabwean delegation comprising the Minister of Finance, Economic Development and Investment Promotion Professor Mthuli Ncube, Lands and Agriculture Minister Dr Anxious Masuka, and Industry and Commerce Minister Sithembiso Nyoni to the Saudi-Africa Summit where he outlined vast investment opportunities Zimbabwe offers.
On Saturday, President Mnangagwa met the Kingdom of Saudi Arabia’s Investment Minister who was accompanied by executives of 10 companies from the oil-rich country.
Zimbabwe is seeking to unlock vast opportunities with Saudi Arabia and work with the kingdom for the realisation of global peace and security.
Zimbabwe is already reaping huge rewards from President Mnangagwa’s engagement and re-engagement initiatives, a foreign policy drive predicated on the maxim, “Friend to all and enemy to none”, which is accompanied by his clarion call to the world that “Zimbabwe is Open for Business”.
The foreign policy thrust has seen Zimbabwe scale new diplomatic frontiers, with plans afoot to reciprocally open consulates between Zimbabwe and Saudi Arabia.
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.”
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