The Budget Statement was presented on the 29th of January 2009
The credibility of the 2009 Budget should be judged against its ability to pronounce measures shift government policies from those promoting and fueling consumption to those which create wealth, through supporting productive sectors, particularly agriculture, mining, tourism and manufacturing, whose capacity utilization is now below 30%.
This is against the background of high inflation; low domestic production and a consistent decline in export performance resulting in balance of payments problems with a deficit of US$410 million being recorded in 2008, from US$33 million in 2007.
BUDGET POLICY PROPOSALS
The proposal is premised
• on the reduction of inflation to double digit levels as well as a positive economic growth rate of about 2% in 2009, projecting a nominal GDP for the country at USD 5.5 billion for the year 2009(highly unlikely given the global slowdown and the state of the economy in terms of production capacity), and a balanced budget linking expenditures to revenues of USD 1.9 billion.
• On the use of multiple foreign currencies for business transactions, alongside the Zimbabwe dollar. The Central Statistical Office, with effect from January 2009 has started to track developments in price indices in foreign currency terms.
• On the revaluation of the Zimbabwe dollar with immediate effect so as to maintain stability (This was effected through the monetary policy statement of 02 February 2009, which dropped 12 zeroes on the local currency). Stability of the currency will depend on matching the monetary base to developments in the real sector, thus matching expenditures to revenue targets.
• On cessation of Reserve Bank of Zimbabwe’s quasi fiscal operations. As at 31 December 2008, all quasi fiscal expenditures incurred since December 2003 have been settled in full and henceforth the Reserve Bank has stopped all quasi fiscal expenditures.
• On a Remuneration Framework for all public servants which provides for:
o . Payment of salaries in local currency, with periodic reviews in line with
cost of living developments
o . Payment of a monthly foreign currency allowance, to facilitate access to a
basket of goods and services now being charged in convertible foreign
• On simplifying the licensing requirements and arrangements to transact in foreign currency for businesses.
• On implementing an Exchange Rate Policy that promotes foreign exchange generation in the economy, as well as encourage the inflow of both short-term and long-term
capital. This is spelt out in the Governor of the Reserve Bank’s monetary
Policy Statement of 02 February 2009.
• On allowing Insurance Companies and Pension Funds to mobilize savings for both public and private investment. Hence, as part of the 2009 Budget policy measures, insurance companies and pension funds, including the National Social Security Authority (NSSA),
have been given the flexibility of conducting business in either local or
foreign currency. With effect from 1 February 2009, insurance companies shall be granted licenses to trade in foreign exchange and to collect premiums in foreign
Similarly, pension funds shall be granted licences to trade in foreign
exchange and to receive contributions in foreign exchange. Consistent with this, the Prescribed Asset requirements applicable with effect from 1 February 2009 is as follows:
• Long term insurance companies will hold 7.5% of their foreign currency
assets in Prescribed Assets denominated in foreign exchange, whilst short
term insurance companies will hold 5%.
• Pension funds, also collecting their contributions in foreign exchange,
will be obliged to hold 10% of their foreign exchange assets in Prescribed
Assets denominated in foreign exchange.
• In cases where the local currency continues to apply, the current
prescribed assets ratios of 35%, 30% and 25% for pension funds, long, and
short term insurance companies shall apply, respectively.
• On allowing The Zimbabwe Stock Exchange to play its critical pivot for socioeconomic
development through its intermediary role between surplus economic agents
and those intending to raise capital.
In order to ensure that the Zimbabwe Stock Exchange fully plays its developmental role, the Ministry of Finance, through the Securities Commission, is putting in place a rigorous code of ethics, as well as stringent licensing and risk management systems for stockbrokers.
Thus stock market trading in both local and foreign currency will be allowed once the necessary framework has been agreed upon regarding:
• The level of domestic foreign currency liquidity to allow for meaningful stock
• The level of foreign investor participation, vis-à-vis promotion of local
ownership and participation in local companies.
• On allowing Utility Authorities, such as ZESA, ZINWA, and National Oil Company of Zimbabwe (NOCZIM) among others, to charge for their services in both local and
foreign currencies. This will be complemented by periodic review of tariffs to economic
levels which allow institutions to cover operational costs, consistent with
the “User Pays” principle.
o All NOCZIM customers, Government and farmers included, will pay the full price in foreign exchange. The Minister of Energy and Power Development will implement a trigger mechanism in the pricing of all petroleum products that immediately captures shifts in international prices and procurement costs.
o As from 1 February 2009, the electricity tariff has been adjusted by 47% from the current US$0.067 to US$0.098 per Kilowatt per Hour (kWh) in order for ZESA to recover costs of supply. This is payable in both local and foreign currency (This tariff is still far short of the regional average)
Whilst adopting a cost reflective tariff approach, a tariff regime
providing for a lifeline tariff of up to 50 kWh hours for domestic consumers will be used to provide for continued subsidisation of low income households, while cost reflective tariffs are to be charged on other consumer categories.
With regards to farmers, the subsidy has been reduced to 20% from 45% of the obtaining tariff level with effect from 1 February 2009.
o As from 1 February 2009, government is decentralising the management of water to local authorities with effect from 1 February 2009.
This will be accompanied by the charging of economic water tariffs.
• On continued targeted support for the productive sectors so as to realize improved production supply.
In agriculture, Government proposes measures for continued support to
farmers, including improved market-based access to inputs, farm
mechanization as well as support for extension services.
o With effect from 1 February 2009 the marketing arrangements for grain is as follows:
o All maize and wheat grain exports are suspended
o The GMB will now announce Free on board (FOB) import parity related maize
and wheat grain floor prices in foreign currency or the local currency
equivalent. Hence, the GMB assumes the role of buyer of last resort.
o Millers and any other grain merchants will now compete in the purchase of
maize and wheat grain direct from farmers, alongside the GMB, at prices not
lower than the import parity related floor price.
o Millers are now also able to participate in marketing arrangements with the GMB to purchase in foreign exchange some of the wheat already delivered to the GMB.
o The price of seed maize payable to farmers upon harvest will be in both local and foreign currencies, and pegged at F.O.B. import parity levels for commercial maize plus 30%.
o The selling price of seed maize to farmers by Seed houses will also be
in both local and foreign currencies, and pegged to levels which take
cognisance of seed maize growers’ price as well as processing costs.
• Financing of agriculture will now resort back to the financial institutions. The Reserve Bank will be coordinating measures to restore and enhance the level of participation by our banks and other financial institutions in lending to farmers. This will be both in terms of provision of short term as well as medium term agricultural finance.
Short term finance facilities will essentially avail 90 - 180 day working capital for purchase of inputs and other requirements. Syndicated financial facilities, guaranteed by Government, through issuance of such financial instruments as Grain Bills offer great opportunity for tapping into what would otherwise remain idle bank deposits.
Furthermore, the Reserve Bank will be taking the lead in coordinating
the banking system in the provision of medium term finance to capacitate
farmers through access to purchase of equipment. This, could be on the basis of such arrangements as lease and hire purchase finance facilities.
The participation of banks in agricultural finance will be strengthened
by the liberalisation of agricultural pricing and marketing arrangements
alluded to above.
o Support measures for agriculture include support for grain, tobacco and livestock production. A crop input pack to support the Communal, A1 and the newly resettled farmers in grain production is planned. To this effect resources amounting to $280 quadrillion (US$8 million) have been set aside.
The support will be in the form of subsidised inputs targeting 300 000 ha with expected yield of 500 000 metric tonnes. Support will also be extended to the vulnerable groups through provision of inputs comprising 10kg grain seed; 50kg compound D and 50kg ammonium nitrate.
To facilitate achievement of the set production levels, resources amounting to $240.1 quadrillion (US$6.9 million) have been set aside to strengthen extension services and monitoring of the programme through Agritex.
Resources amounting to $105 quadrillion (US$3 million) have also been set-aside for working capital in tobacco production targeting about 25 000 hectares.
Resources amounting to $56 quadrillion (US$1.6 million) have been allocated towards the rebuilding of the National Herd Programme. The programme involves the procurement of bulls, cows and artificial insemination will be implemented through Agribank, agricultural
colleges, the Cold Storage Company and the Agriculture Rural Development Authority (ARDA).
Alongside the livestock-rebuilding programme, Government is also making resources available for enhancement of veterinary services including procurement of vaccines and dipping chemicals for the prevention of animal disease outbreaks under the Animal Disease and Risk Management Programme.
o The Government will for the coming summer crop season be encouraging increase contract farming. Hence, agro-processing companies are now invited to begin making arrangements for provision of inputs, financing and extension support
to farmers on a Contract farming win-win basis.
In Manufacturing measures that contribute to the competitiveness of domestic production, and review of import duties that offer unfair competitive advantage to foreign produced goods were announced. These include:
o Reviewing the role of the National Incomes and Pricing Commission to that of monitoring price trends obtaining in the sub-region and beyond, guiding producers and retailers as well as advising Government on import parity based pricing.
o The continued facilitation, over the short term, the uninterrupted importation and availability of basic goods in our markets by individuals and corporates.
o The establishment of an Export Bank to support all the productive
sectors venturing into export markets has become necessary given our drive
on increasing our export earnings and rendering the whole country an export
zone. Initiatives were left to the Reserve Bank to institute but to date nothing has been announced
o Government is also setting up a Zimbabwe Exploration Corporation
dedicated to mineral exploration and assessing the potential of the various
o Exportation of unprocessed mineral deposits is being suspended in support of greater beneficiation. This includes current exportation of chrome ore in its raw form, scrap
metal, among others. Furthermore, the issuance of export permits for scrap metal, is now
rationalised and restricted to one Authority, namely, the Ministry of Industry and International Trade. All such other authorities are, therefore, invalidated.
o Government has reclassified diamonds, emeralds, and platinum as reserve
assets, alongside gold, the management these will be through the Reserve Bank.
On capitalisation quasi government companies,
A Framework for the re-capitalisation of such entities as the Cold
Storage Company, ZESA, Air Zimbabwe, National Railways of Zimbabwe (NRZ), as
well as telecommunication companies Tel-One and Net-One, is being developed.
This will also apply to companies in which Government has significant
shareholding, such as Hwange Colliery, and the Zimbabwe Iron and Steel
On Governance of quasi government companies
Legislation is being proposed for providing for greater role clarity and accountability
of boards and management through a Public Finance Management Bill.
In the interim, all Public Enterprises boards are now required to
institute the necessary arrangements to ensure that key posts are manned by
substantive personnel with the requisite skills and competencies.
all companies in which Government has shareholding to pay dividends. In this regard, the
Accountant General has been directed to work out the necessary arrangements
with the respective company Boards and Management.
On Infrastructure Development
Infrastructure rehabilitation and development in such sectors as power generation, road and dam construction as well as water infrastructure offer scope for stimulating economic activities and generate more employment. This will be pursued through joint ventures under the Built Operate Transfer/Built Own Operate Transfer(BOT/BOOT) arrangements.
However, this requires structuring appropriate incentives and other measures that guarantee viability of identified projects.
Notable sectors and projects identified for implementation under
BOT/BOOT arrangements include the following:
Roads and Railways
. Harare - Beitbridge road dualisation;
. Harare - Chitungwiza railway line.
. Expansion of Kariba Power Station;
. Expansion of Hwange Power Station.
Water & Irrigation
. Construction of Kunzvi, Tokwe-Mukosi, Biri and Gwayi-Shangani dams;
. Expansion and construction of irrigation schemes such as Middle Sabi,
Nuanetsi, Wenimbi, Osbourne, Manyuchi and Dande.
. Network expansion and upgrading.
Government Buildings & Housing
. Construction of houses;
. Maintenance of Government buildings.
Iron & Steel Making
. Refurbishment of ZISCO.
On Toll Gates
The Zimbabwe Revenue Authority to set up rudimentary Toll gate structures to facilitate the collection of toll fees along major highways as from 1 March 2009. An allocation of $70 quadrillion (US$2 million) was made for the construction of appropriate structures.
The payable Toll gate rates will be as follows:
Motor cycles US$1.00
. Passenger vehicles & light trucks US$2.00
. Minibuses US$3.00
. Buses US$5.00
. Heavy Trucks US$7.00
. Haulage Trucks US$10.00
Vehicle Registration, Change of Ownership and Vehicle Number Plates
o Production of number plates for vehicle registration to be done locally as was the situation before. This measure takes effect from 1 March 2009.
o With immediate effect, the Central Vehicle Registry will allow upon change of ownership, the same number plates to be transferred to the new owner. This only applies to the newly introduced alpha numeric number plates.
Indiscipline & Corruption
A new standard scale for fines was set up which takes effect from 30 January 2009 which will be reviewed by the Minister of Finance
Level Current fine (Z$) Proposed fine (US$)
1 5 5
2 10 10
3 20 20
4 50 100
5 100 200
6 200 00
7 300 400
8 400 500
9 500 600
10 600 700
11 900 1 000
12 1 000 2 000
13 2 000 3 000
14 5 000 5 000
EXPENDITURE PROPOSALS - Highlights
• A total 2009 Budget of $66.5 quintillion (US$1.9 billion), comprising $50.75 quintillion (US$1.45 billion) recurrent expenditure and $15.75 quintillion (US$0.45 billion)
capital expenditure was proposed.
• The above Budget provision includes an amount of $7 quintillion (US$200
million), being resources already committed by cooperating partners which
are earmarked for specific programmes. Such resources will be accounted for
as the Vote of Credit.
• Employment Costs comprising the wage bill, pension as well as medical aid insurance,
amounts to $16.9 quintillion (US$482.8 million).
• Operations & Maintenance requirements, including office running expenses, stationary supplies and other necessities, an amount of $17.96 quintillion (US$513 million) was allocated. This covers line Ministries and their Departments as well as institutions funded through grants from the fiscus such as the Sports and Recreation Commission, the Consumer Council of Zimbabwe and universities.
• Social Protection programmes such as the Basic Education Assistance Module (BEAM), Public Health Assistance, Public Works and Children in difficult circumstances, among others were allocated $1.87 quintillion (US$53.5 million).
• Education was allocated an amount of $5.2 quintillion (US$149.8 million) through the Ministry of Education, Sport and Culture. This amount to cover construction and rehabilitation of schools (US $10.8 million); procurement of teaching and learning materials (US$46.1 million); ZIMSEC ( US$16.9 million) which will be supplemented by additional income from examination fees.
• Tertiary Institutions were allocated an amount of $1.1 quintillion (US$29.9 million) for state universities, comprising $437.5 quadrillion (US$12.5 million) for recurrent expenditure
requirements and $609 quadrillion (US$17.4 million) for capital projects, including teaching and learning equipment; and $437.2 quadrillion (US$12.5 million) for the
thirteen Teachers’ Training colleges and ten Polytechnics, mainly focusing
on operational requirements.
• An amount of $5.52 quintillion (US$157.8 million) was allocated for health through the Ministry of Health and Child Welfare. $2.1 quintillion (US$59.9 million) is targeted at
Government central, provincial and district hospitals as well as rural health centres. In this allocation, 60% caters for the procurement of drugs and medical supplies while the balance stands for general running expenses for these institutions.
o An amount of $759.5 quadrillion (US$21.7 million) is allocated for the procurement of drugs and other medical supplies for local authorities and mission hospitals and clinics and another special allocation to NatPharm for capitalisation of $568.75 quadrillion (US$16.25 million).
o In addition an amount of $141.2 quadrillion (US$4 million) has been set aside for procurement of sixty-one ambulances and eighty service vehicles.
REVENUE PROPOSALS - Highlights
Revenue collections are anticipated to amount to providing for Revenues amounting to US$1.7 billion, which will be raised through the following taxation measures
1 Corporate Profit Tax
With effect from 1 January 2009, corporate tax will be remitted in the currency in
which business is conducted. Corporate profit tax is currently payable in local
currency, except in instances where the holder of a special mining lease has
elected to maintain all books and records relating to the special mining
lease operation in foreign currency. However, most companies now conduct
business in foreign currency, hence realise profits in the same currency.
2 Value Added Tax (VAT)
The VAT legislation provides that where payment for supplies of goods
and services is in foreign currency, VAT should also be payable in foreign
currency. However, upon importation VAT is payable in local currency. VAT
remittances to the fiscus are thus not commensurate with the volume of
business conducted in foreign currency.
With effect from 30 January 2009, import VAT now payable in foreign currency on
the value of all imports with effect from 30 January 2009.
3 Customs Duty
Customs duty will be charged in foreign currency on all imports with effect from 30 January 2009.
4 Carbon Tax and NOCZIM Debt Redemption Levy on Fuel
Carbon tax and NOCZIM Debt redemption levy on fuel to levied in
foreign currency with effect from 30 January 2009.
The reviewed rates applicable as from 30 January 2009 for customs duty, carbon tax and NOCZIM redemption levy on fuel will be as follows:
Tax Head Current Rate Proposed Rate
Customs Duty 5% of CIF value or Z$236 500 per litre 30% of CIF value or US16 Cents per litre or whichever is greater
Carbon Tax Z$0.20 per litre
5% of CIF value or US 3
cents per litre, whichever is greater
NOCZIM Debt Redemption Z$0.20 per litre
litre 5% of CIF value or US 3 cents per litre, whichever is greater
Total Z$236 500.4 per litre 40% or US 22 Cents per litre
5 Excise duty
With effect from 30 January 2009 excise duty on imported and locally produced beer and alcoholic beverages and locally produced cigarettes and tobacco to be charged in foreign currency.
6 Second Hand Motor Vehicles
Excise tax on second hand motor vehicles be collected in foreign currency with effect from 30 January 2009.
7 Presumptive Tax
Presumptive tax was introduced to capture the hard to tax informal sector. With effect from 1 January 2009 presumptive tax will be paid in foreign currency on a quarterly basis as follows:
. Vehicles used for Class 4 Training - US$500 per vehicle.
. Vehicles used for Classes 1 and 2 Training - US$600 per vehicle.
. Of carrying capacity of less than 20 tonnes - US$1 000 per vehicle.
. Of carrying capacity of more than 20 tonnes - US$2 500 per vehicle.
. Combination of haulage truck trailers of a capacity of 15 - 20 tonnes -
US$2 500 per vehicle.
Commuter Transport Operators
. Of carrying capacity of 8 - 14 passengers - US$150 per vehicle.
. Of carrying capacity of 15 - 24 passengers - US$200 per vehicle.
. Of carrying capacity of 25 - 36 passengers - US$400 per vehicle.
. Of carrying capacity of 37 passengers and above- US$650 per vehicle.
. US$100 per vehicle.
. US$1 500 per salon.
8 Capital Gains Tax and Stamp Duty on Immovable Properties
Capital gains tax and stamp duty to be paid in foreign currency where immovable property is disposed of in the same currency with effect from 30 January 2009.
9 Pay As You Earn (PAYE)
Separate foreign currency tax tables for employees remunerated in foreign currency to be introduced with effect from 1 February 2009.
10 Withholding Tax
10.1 Tenders, Consultancy and Other Services
Where transactions are conducted in foreign currency, withholding tax should be payable in the same currency. This measure will apply on tenders, consultancy and other services above S$250 per transaction with effect from 30 January 2009.
10.2 Commercial Imports by Unregistered Traders
Withholding tax on commercial imports by unregistered traders to be paid in foreign currency with effect from 30 January 2009.
Accelerated Remittance Periods
VAT payment date brought forward to the third day of the following month with effect from 1 January 2009. The proposed payment date applies to all registered operators.
Remittance date for payment of PAYE reviewed to the third day of the following month with effect from 1 January 2009.
10.5 Capital Gains Withholding Tax
The remittance date for Capital Gains Tax reviewed to the third day of the following month with effect from 1 January 2009.
11 Value Added Tax Registration Threshold
The VAT registration threshold to reviewed to US$60 000 per annum. This measure does not apply to operators who are already registered for VAT purposes.
12 Motoring Benefits
The deemed motoring benefits reviewed, with effect from 1
February 2009, as follows:
Engine capacity Current Level per month ZW$ Proposed Level per month US$
Up to 1 500cc 45 000 50
Over 1500cc not exceeding 2000cc 50 000 60
Over 2000cc not exceeding 3000cc 70 000 80
Over 3000cc 90 000 100
Where the fringe benefit accrues to a taxpayer earning a salary in
local currency, the deemed income will be converted to local currency using
the rate at which exporters are paid by the Reserve Bank upon surrender of
13 Tax on Miscellaneous Income Deposits into Individual & Corporate Accounts
A special tax to levied on funds deposited into individual and corporate accounts at the highest marginal tax rate of 40%, with the tax-free threshold to be determined in tandem with market developments, with effect from 1 February 2009.
NB This proposal will not apply to lawful sources of income as defined in
the Income Tax Act and in incidences where the same income has already been
subject to tax.
0.1 Incentives for the Tourism Sector
exempt from duty capital goods used by registered tourist service providers that include tour operators, safari operators, boat operators and car hire companies.
exempt from duty equipment for expansion, modernization and renovation of hotels and
. The above measure takes effect from 1 March 2009.
0.2 Capital Allowances
Capital allowances for companies reviewed with effect from 1 January 2009, as follows:
. Passenger motor vehicle allowance - US$10 000.
. Staff housing allowance - US$25 000.
0.3 Donations to Schools, Hospitals, Clinics, Research and Development
Allowable deductions for donations to schools by the private sector pegged at maximum of US$100 000 per annum with effect from 1 January 2009.
0.4 Attendance at Conventions
To incentivise companies to attend trade conventions so as to market their business, the
deductible allowance reviewed to US$2 500 per annum with effect from 1 January 2009.
Tax Relief Measures
0.1 Tax-free Pension Contributions
Maximum deductible monthly pension contribution in foreign currency
pegged at US$300 with effect from 1 February 2009.
0.2 Tax Credits
Tax credits for the elderly, blind and physically challenged set at US$75 per month with effect from 1 February 2009.
0.3 Retrenchment/Severance Packages
The minimum tax free threshold of the retrenchment package set at US$1 000 or one third of the retrenchment package,up to a maximum of US$9 000 with effect from 1 February 2009.
0.4 Rental and Investment Income for Elderly Taxpayers
The exempt portion of proceeds from such income to US$250 per month with effect from 1 February 2009.
15 VAT on Mobile Phone Airtime
The VAT rate on mobile phone airtime declines to 15% from 22.5% with effect from 1 February 2009.
16 Customs Duty
16.1 Customs Duty Suspension on Basic Commodities
480. Customs duty was suspension on some basic commodities extended to 30 June 2009.
16.2 Customs Duty in Foreign Currency
Custom duty reduced and surtax of 15% removed on all products that attract current duty rates of 40% and above. New duty applicable as follows:-
Product Current rates of customs duty Proposed rates of customs duty
Raw materials 0% - 25% 0% - 15%
Intermediate goods 10% - 25% 10% - 15%
Clothing and textiles 40% - 60% + US$10/kg 40% + US$5/kg
Clothing and textiles (school uniforms) 60% + US$10/kg 25%
Footwear 40% - 60% + US$5 per pair 40% + US$5 per pair
Electrical goods 60% 40%
Alcohol & alcoholic beverages 60% 40%
Cigarettes and tobacco 60% + US$5/1000 40% + US$5/ 1000
Motor Vehicles 40% - 80% 25% - 60%
Handbags and other articles of leather,plastic or textile material 60% + US$5/kg 40% + US$5/kg
Fruits and vegetables 40% 25%
This measure takes effect from 1 February 2009.
16.3 Travellers’ Rebate
Individuals are allowed to import under rebate of duty, goods valued up
to US$300 once in a calendar month. However, there are no restrictions with
regards to quantities that individuals may import. As a result, individuals
import commercial goods for resale under rebate of duty thereby prejudicing
revenue to the fiscus.
In order to minimise loss of revenue to the fiscus, it is proposed that the
travellers’ rebate be restricted to goods imported for personal consumption.
The Zimbabwe Revenue Authority will provide guidelines on goods of a
commercial nature to be excluded from the rebate.
District Councils’ Unit Tax
In order to raise the revenue base and capacitate rural district councils, they have been empowered to enforce the collection of Unit tax on A1 and A2 farming communities in foreign currency as follows with effect from 1 January 2009.
Natural Region Proposed unit tax per hectare per annum US$
Fees and Charges
Road Access Fees
The road access fee payable on locally registered vehicles at ports of entry set at US$10 and US$20 respectively with effect from 30 January 2009.
A two tier hospital service fee structure in both local and foreign currency, to be applied by government hospitals. (See Annex 1)
Schools’ Tuition & Examination Fees
With immediate effect, all schools other than primary schools in both
rural areas and high density suburbs are authorised to collect tuition and
examination fees as well as levies in both local and foreign currencies.
Rural day primary schools and primary schools in high density suburbs
will, however, be exempted from tuition and examination fees but will be
permitted to charge their levies in both local and foreign currencies.
It is further proposed that they schools offer Technical Vocational subjects, including Agriculture, in their Curriculum and also embark on farming activities. Those without land should,therefore, apply for it through the relevant authorities.
The responsibility to regulate and control school fees and levies,
taking account of economic developments, reverts back to the Ministry of
Education and away from the National Incomes and Pricing Commission who are
currently exercising that responsibility.
Tertiary Education Fees
Government has, approved the tuition fees and levies for
State Universities, Polytechnics and Teachers Colleges payable in both local
and foreign currency. (See Annexure 2)
Deceased estates are entitled to a duty exemption on the principal residential property and one family vehicle. The estate is also subject to a tax-free threshold currently pegged at $25 billion, above which 5% duty is levied on additional estate properties.
The estate duty tax-free threshold is set to US$50 000 with effect from 1 February 2009.