Tax-free bonus threshold upped from $1k to $ 5k
FINANCE and Economic Development Minister Professor Mthuli Ncube yesterday presented pro-people 2020 National Budget proposals, which contained safety nets for vulnerable people, including bonuses for civil servants, a better mass public transport system and an increase in the tax-free threshold to $2 000.
Presented under the theme, “Gearing for Higher Productivity, Growth and Job Creation”, the Budget has several worker-friendly measures including revising the tax-free bonus threshold from $1 000 to $5 000.
The bonus is based on gross salary. Economic analysts and social commentators view a “people’s budget”as one that seeks to create a brighter future for all citizens, ensuring that every family struggling for survival has a fair opportunity to live well.
Investment in infrastructure, safety and prosperity for citizens is seen as crucial.
In an environment of rising prices, bonuses will boost disposable incomes for civil servants ahead of the festive season.
Prof Ncube said against the background of the inflationary environment, incomes will be reviewed constantly to ensure a decent living for citizens.
The tax-free threshold was raised from $700 to $2 000, implying that at current salaries of $1 023 for the lowest-paid civil servant, most of them will not be taxed.
Tax bands had been adjusted to begin at $2 001 and end at $50 000, above which the highest marginal tax rate of 40 percent will apply with effect from
January 1, 2020.
He said Government remained committed to social dialogue and planned to put in motion the establishment of an independent secretariat to oversee the work of the Tripartite Negotiating Forum (TNF) as provided for in the TNF Act.
Through social dialogue, Government, business and labour will develop measures to address the socio-economic challenges confronting the country.
To protect vulnerable groups, the Government intended to extend targeted subsidies on the production of roller meal, cooking oil and the standard loaf of bread.
A reimbursement system would be implemented to extend the subsidy to the producers of roller meal, cooking oil and standard bread through tax setoff arrangements where possible, and voucher schemes.
Prof Ncube said the Government will continue subsidising the mass transport system and capacitating Zupco to provide an efficient public transport system.
Zupco will be capacitated to buy more reliable conventional buses to reduce the burden on urban and rural people.
In addition, the Government had ring-fenced the importation of 100 public service buses of a sitting capacity of at least 60 passengers, at a reduced customs duty rate of 5 percent to ease transport challenges.
To date, 51 buses have been imported and Prof Ncube proposed to extend the facility for 12 months beginning January next year to afford an opportunity to other bus operators to replenish their fleets.
An operator will be limited to five buses.
In terms of housing provision, Government was seeking to bridge the 1,3 million unit housing backlog within the context of urban renewal or regeneration under the National Housing Delivery Programme.
This involved the modernisation of old or dilapidated superstructures and attendant infrastructural services like sewer and water.
The National Human Settlements Policy being developed will guide operations in the housing sector including urban regeneration for projects such as
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