THE 2025 National Budget is expected to provide relief to taxpayers while enhancing the government’s capacity to generate additional revenue and strengthening tax administration, Finance, Economic Development and Investment Promotion deputy minister David Mnangagwa has said.
Mnangagwa’s statement comes at a time when deliberations at the ongoing 42nd Employers’ Confederation of Zimbabwe annual congress in Victoria Falls yesterday highlighted that Zimbabweans were overtaxed, with a number of tax heads posing an unbearable burden on the ordinary citizens.
But responding to questions after his presentation at the congress, Mnangagwa, who revealed that the budget statement will be unpacked at the end of next month, said providing relief to taxpayers was a tacit admission that the taxes were a burden.
He also revealed that over 95% of the country’s revenues were from taxes, in line with the de-dollarisation roadmap, other taxes will also be exclusively paid in local currency, including payment for government services.
“Our tax policy, our tax focus, the first point and it will be coming up in the budget, is to provide relief to taxpayers. Providing relief means that there is a tacit admission that there was a bit of pressure,” Mnangagwa said.
“There will be a concerted effort to provide relief to taxpayers, but at the same time, we will be enhancing the capacity of governments to generate additional revenue and strengthen the tax administration, which means that we will become more efficient. Efficiency will then provide the relief that we need.”
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He said the budget would also prioritise nine key areas of the National Development Strategy 1 (NDS1) instead of the usual 14.
Mnangwagwa said based on the findings from the NDS1 Mid-Term Review, the 2025 National Budget will prioritise projects and programmes, particularly those that support a conducive business environment, drive industrialisation, aid structural transformation and build resilience to shocks.
To support structural transformation, Mnangagwa said fiscal outlays will prioritise the provision of critical economic enablers, while ensuring core social programmes that benefit the poor are protected.
“Human Capital Development Strategy will be developed to align the human resources and skills needed to achieve national goals.
“Effectively managing the public service wage bill remains critical in creating fiscal space to fund key programmes and projects sustainably,” he said.
“The increasing demand for infrastructure services over the past few years, arising from the growing economy and population, requires new and innovative actions and reforms that foster social and economic inclusion along the infrastructure value chain with communities, women and youth around such projects being given opportunities to provide services and labour as a catalyst for equitable development. Priority in 2025 will be to complete ongoing projects.”