Key 2018 Budget Highlights
Finance minister Patrick Chinamasa on Thursday presented the country’s 2018 budget which focused on cutting government spending. We give you the highlights.
Gross Domestic Product (GDP) growth is projected at 4,5 percent in 2018.
Total expenditure for 2018 projected to reach $5.74 billion while revenue seen at $5,07 billion.
2018 budget deficit projected at $675,8 million.
Employment costs at $3,27 billion and capital expenditure at $1,16 billion translating to 5,51 percent GDP.
Tax revenue collections are estimated to account for $4,3 billion of inflows while Non-tax revenue for 2018 is estimated at $237 million.
Collections from Retention Funds across all ministries are estimated at $434 million.
Inflation is projected to be at 3,01 percent in 2018.
Power generation projects exempt from Corporate Income Tax for the first 5 years, and a Corporate Income Tax rate of 15 percent thereafter.
Electricity generation expected to register growth of about 14,6 percent.
More than 3,000 posts of youth officers abolished.
Recruitment freeze maintained across the board, save for critical posts, as determined by treasury in conjunction with service commissions.
Government to retire staff above the age of 65.
To reduce size of delegations and close down some embassies.
Government to pay civil servants 2017 bonuses ($176 million) on a staggered basis.
$132,2 million set aside to support the 2018 general elections.
Extension of duty facility on capital equipment imported by approved medical institutions and practitioners, with effect from 1 January 2018.
To levy bookmakers 5 percent of gross takings with effect from 1 January 2018.
Ring-fencing of $5 million from presumptive taxes for the formalisation of traders and vendors and on-lending to small and medium enterprises.
Suspension of duty on raw milk facility for a period of 24 months, in order to augment domestic production.
Goat and sheep meat exempted from VAT, with effect from 1 January 2018.
Customs duty on cotton fabric increased from 10 percent, to 30 percent plus $2,50 per kilogram, with effect from 1 January 2018.
$182,4 million to support housing development.
