THE GOVERNMENT has gazetted the new Finance Bill which provides for the implementation of taxation proposals announced by Finance and Economic Development minister Patrick Chinamasa in the 2014 budget.
The Bill covers the proposed income tax and value added tax including provision for collection of tax on the exportation of raw hides and platinum capital gains tax which were announced in the budget presented on December 19 last year.
On the mining sector, the proposal includes the review of gold royalties under the Mines and Minerals Act, Minerals Marketing Corporation of Zimbabwe Act, dividends payable to the government, depletion fees payable on minerals marketed by the Mineral Marketing Corporation of Zimbabwe, the “use it or lose it” amendments to the Mines and Minerals Act and the Zimbabwe Mining Development Corporation Act, amendment on the controls of paying dividends to the government and repayment of capital, among other things.
The government in the same period gazetted the Appropriation (Supplementary) Bill, 2013 (HB 9, 2013) which condones unauthorised expenditure incurred during the financial year 2013 with respect to the referendum, harmonised elections, food security and selected projects as well as on employment costs.
The government last year, among other unbudgeted expenditure, had to channel $142 million to the Zimbabwe Electoral Commission, $36 million to the President’s Office including $15 million for foreign travel, $26 million to the Defence ministry, $90 million to the Agriculture ministry and $82 million to the Home Affairs ministry.
The Sovereign Wealth Fund of Zimbabwe Bill (HB 6/2013) was also gazetted to provide for the establishment and objects of the Sovereign Wealth Fund and to set out the powers of the fund’s board.
The objective of the fund is to secure investments which will see up to one quarter of government’s royalties on gold, diamonds, platinum, chrome and other minerals and its special dividends on the sale of diamonds, being paid into the fund.