2022 National Budget Zimbabwe
The Zimbabwe national budget for the fiscal year 2022 was presented by Mthuli Ncube on 25 November 2021. Zimbabwe's 2022 National Budget was presented under the theme "Reinforcing Sustainable Economic Recovery and Resilience."
Projections
Presenting the national budget, Mthuli Ncube said Zimbabwe's GDP was projected to grow by 5.5 % in 2022.
Budget Allocations
Summary of Vote Allocations
Having presented the various measures and allocations under seven priority areas, in summary, the 2022 Budget proposed the following Votes:
| 2022 Budget (ZWL$ billion) | |
|---|---|
| Office of the President and Cabinet | 32,391,219,000 |
| Parliament of Zimbabwe | 14,615,082,000 |
| Public Service, Labour and Social Welfare | 19,477,330,000 |
| Defence and War Veterans | 61,553,280,000 |
| Finance and Economic Development | 37,071,937,000 |
| Audit Office | 3,014,099,000 |
| Industry and Commerce | 3,879,548,00 |
| Lands, Agriculture, Water, Climate and Rural Resettlement | 124,049,100,000 |
| Mines & Mining Development | 3,020,937,000 |
| Environment, Tourism and Hospitality Industry | 3,711,362,000 |
| Transport and Infrastructural Development | 60,802,472,000 |
| Foreign Affairs and International Trade | 14,877,305,000 |
| Local Government and Public Works | 24,315,327,000 |
| Health and Child Care | 117,714,215,00 |
| Primary and Secondary Education | 124,069,971,000 |
| Higher & Tertiary Education, Science and Technology Development | 35,456,506,000 |
| Youth, Sport, Arts and Recreation | 7,844,058,000 |
| Women Affairs, Community, Small and Medium Enterprise Development | 4,734,493,000 |
| Home Affairs and Cultural Heritage | 49,417,575,000 |
| Justice, Legal and Parliamentary Affairs | 22,705,137,000 |
| Information Communication and Technology | 2,652,674,000 |
| Energy and Power Development | 3,871,607,000 |
| Information Communication Technology, Postal and Courier Services | 3,294,554,000 |
| National Housing and Social Amenities | 10,061,472,000 |
| Judicial Service Commission | 5,445,814,000 |
| Public Service Commission | 22,752,070,000 |
| Council of Chiefs | 671,030,000 |
| Human Rights Commission | 403,898,000 |
| National Peace and Reconciliation Commission | 441,333,000 |
| National Prosecuting Authority | 1,629,265,000 |
| Zimbabwe Anti-Corruption Commission | 913,713,000 |
| Zimbabwe Electoral Commission | 11,632,813,000 |
| Zimbabwe Gender Commission | 497,590,000 |
| Zimbabwe Land Commission | 1,759,307,000 |
Major Initiatives
Legislative Amendments
- Ncube proposed to extend the VAT exemption on accommodation and visitor services consumed by domestic tourists by a further 12 months with effect from 1 August 2021.
Tax Credits for Employing Physically Challenged Persons
- Introduction of a tax credit of US$50 or local currency equivalent per additional employee recruited per month for corporates that employ physically challenged persons. The credit will, however, be limited to a maximum of US$ 2 250 per year of assessment.
Tourism
- An extension to the suspension of duty on the motor vehicles imported by the Safari and Tour Operators for a further 2 years, beginning 1 January 2022.
Dairy Revitalisation
- Introduction of a levy of 5% on the value of imported dairy products. The funds will be ringfenced for re-capitalising the Dairy Revitalisation Fund, targeted at growth and development of the dairy sector by increasing the national dairy herd, enhancing the competitiveness of the dairy sector, supporting modernisation and standardisation of local milk production.
Rebate of Duty on Capital Equipment Imported for Use in Specified Industries
- Duty-free importation of the capital equipment through the tariff regime.
- Companies applying for the rebate of duty facility should be incorporated
- No third-party companies shall be granted rebate of duty. These include tribute agreements and hired suppliers or contractors;
- A minimum threshold of US$10 000 of the value of the equipment is required for processing a Rebate.
Tax Exemption on Councillors’ Allowances
- Councillors appointed in terms of the Urban Councils Act are exempted from tax. Mthuli Ncube also proposed to extend the income tax exemption to allowances paid to councillors appointed in terms of the Rural District Councils Act.
