Minister of Finance and Economic Development, Mthuli Ncube says government has increased tax for small businesses that are operating on designated places in the CBD which will see landlords paying US$30 per month to the government.
Speaking during the presentation on the national budget yesterday, minister Ncube said, “their place of business is, thus, comprised of partitioned units in commercial buildings.”
“A number of enterprises operate from designated business premises where the landlords are either local authorities or private property owners such as the Gulf Complex and Kwame Mall, among others.
“The fixed nature of their business, thus, presents an opportunity for the tax administration to improve tax collections from presumptive taxes. I, therefore, propose to introduce a presumptive tax of an equivalence of US$30 per unit per month.” Minister Ncube said.
Minister Mthuli Ncube said the review will come to effect from January 1.
Meanwhile, during the presentation of the national budget review, the minister Ncube said the government is committed to improving workers’ disposable income but therefore increased the tax-free threshold from $5 000 to $10 000 per month.
“Government remains committed to improving workers’ disposable income as part of the broader agenda to increase aggregate demand and savings,
“I, therefore, propose to review the tax-free threshold from $5 000 to $10 000 per month. I further propose to adjust the tax bands to begin at $10 001 and end at $250 000 per month, above which the highest marginal tax rate of 40% will apply. The above measures are effective from January 1 2021.” Ncube said.
Minister Ncube increased the bonus tax – free threshold with effect from 1 November 2020.
“In addition, I propose to review upwards, the bonus tax-free threshold from $5 000 to $25 000, with effect from November 1 2020.” He said.