2019 Budget Highlights

Effective January 1, 2019, there will be a 5 percent cut on basic salary for all senior positions from principal directors, permanent secretaries, and their equivalents, up to deputy ministers, ministers and the Presidium.

Civil service bonus to be paid before year-end.

Customs duty on motor vehicles and other vehicles and other selected goods to be paid in foreign currency

Increase in excise duty by 7cents per litre on diesel and paraffin and 6,5 cents on petrol to reduce arbitrage opportunities.

There will be no further acquisitions of non-performing loans by Zimbabwe Asset Management Company (ZAMCO).

To retire 2 917 youth officers who remain on payroll by December 2018.

Introduction of a biometric registration of all civil servants with effect from January 1, 2019, to weed out ghost workers.

Multi-currency system remains in place, with US dollar being the currency of reference. Growth rate projec- tions for 2018 through to 2021 have been revised downwards from those in the TSP

Economy to grow 3.1 percent in 2019

Increase in excise duty on cigarettes from US$20 to US$25 per 1000 sticks

Review tax free threshold from US$300 to US$350 and further widen the tax bands from US$351 to US$20 000, above which income is taxed at the highest marginal tax rate of 45 percent.

Suspension of customs duty and exemption from VAT of sanitary wear products for 12 months.

Provide further exemptions for the 2 percent intermediary money transfer tax

Re-engagement efforts raising investor interest with more than US$15 billion worth of projects being negotiated.

2019 budget deficit projected at US$2,86 billion (11,7percent of GDP) against a target deficit of US$793 million.

Government to gradually reduce budget deficit to single digit level hence targeting 5% in 2019, 4,1% in 2020, and 3% in 2021.