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*Budget 2023: Duty Suspended On Equipment Imported For Tourism, Mining* *Follow Pindula on WhatsApp for daily new updates* https://whatsapp.com/channel/0029Va84dngJP21B2nWeyM3v?mv The government of Zimbabwe has suspended duty on equipment imported by approved tourism operators, and miners. Finance and Economic Development Minister, Mthuli Ncube announced the suspension in his 2023 Budget presentation on Thursday. He said: ---------- itel A70 256GB $99USD WhatsApp: https://wa.me/+263715068543 Calls: 0772464000 ---------- > Mr. Speaker Sir, the tourism industry has for the past decade, benefited from rebate of duty on capital equipment, which has enabled operators to revamp their facilities, as well as acquire requisite equipment to match international product standards. > In addition to meeting international standards, Government’s legitimate expectation is that consumers should benefit from responsible and affordable pricing. The benefits to the consumers have, however, been minimal and the contribution to the Fiscus remains insignificant. > I, therefore, propose to replace the facility with suspension of duty on specified capital equipment imported by approved tourism operators, with effect from 1 January 2023. > Furthermore, for ease of administration, I propose that the minimum value of capital equipment to be imported under suspension of duty be pegged at US$25 000, with effect from 1 January 2023. *Rebate of Duty on Goods Imported by Operators in Special Economic Zones* > Mr. Speaker Sir, companies operating in Special Economic Zones are privileged to import raw materials and capital equipment duty free. Government recently provided for duty free importation of capital equipment for use by the agriculture, energy, manufacturing, mining and health sectors, hence, the need to align Special Economic Zone incentives to current policy priorities. > I, therefore, propose to limit the Rebate of Duty Facility to operators who meet the qualifying degree of export orientation, in line with the provisions of the income tax legislation. > This measure takes effect from 1 January 2023. *Suspension of Duty on Goods Imported for Specific Mine Development Operations* > Mr. Speaker Sir, Government has since 2010, suspended customs duty on goods of a capital nature used for mining development operations. As already alluded to, Government recently provided for a zero-customs duty regime on capital equipment imported by the agriculture, energy, manufacturing, mining and energy, with a view to simplify tax administration. > Mining companies are, thus, able to import specified equipment without seeking approval from Government Ministries, thereby reducing the cost of doing business. > I, therefore, propose to repeal legislation relating to suspension of duty on specific mine development operations, in line with the Ease of Doing Business Concept, with effect from 1 December 2022. > Notwithstanding the above, mining houses will continue to import eligible equipment until the expiry of the already gazetted mining locations and periods thereof. > In addition, mining companies will continue to benefit from other tax incentives targeted at supporting growth of the sector. *Excise Duty on Energy Drinks* > Mr. Speaker Sir, you will be aware that Government, in January 2022, introduced a flat rate of excise duty on energy drinks at a rate of US$0.05/litre, with a view to encourage responsible consumption of such products, as well as mobilise additional revenue to the Fiscus. Additional funds generated from the review of excise duty on energy drinks is ring-fenced towards treatment and support of cancer, diabetes and hypertension patients through the Non-Communicable Diseases Fund. > Mr Speaker Sir, there remains scope to promote responsible consumption of energy drinks, whose health benefits are minimal, against the consequential hazards. > I, therefore, propose to review upwards, the flat rate of excise duty on energy drinks from US$0.05 cents per litre to US$0.10 per litre, with effect from 1 January 2023. *TAX RELIEF MEASURES* *Rebasing of Unredeemed Capital Allowances* > Mr Speaker Sir, corporates are allowed to offset the value of investment in capital equipment against taxable income over a maximum period of four years. However, inflation has eroded the unredeemed balances of capital investment qualifying for deduction in the determination of taxable income. > Recent policy measures to address the erosion of value for unredeemed capital allowances only cover outstanding balances as at 2021, hence, corporates are reporting artificial profits, thereby increasing the tax burden. In order to restore value, I propose that unredeemed capital allowances as at 1 January 2023 be rebased to the local currency equivalent of the outstanding foreign currency invoice value at the beginning of each financial year. *More Pindula News* _If you found this article useful_ *Please support Pindula by forwarding to friends and groups*
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