Zimbabwe Dropping Tax On Beer and Diamonds

November 28, 2014 Taxation in Zimbabwe

HARARE – Zimbabwe is dropping taxes on beer, platinum and diamonds in order to boost the national economy.

On November 27th the Finance Minister of Zimbabwe Patrick Chinamasa announced that the government will reduce the rates of a number of taxes in order to foster greater levels of economic activity in selected local industries, including mining, diamond cutting, and beer production.

In order to encourage diamond miners to refine the diamonds instead of exporting them in raw form, the government has confirmed that I will drop the 15 percent royalty charged on the export of locally refined diamonds.

The government will also defer the implementation of the 15 percent export tax on raw platinum, which was scheduled to come into effect on 2017.

In an effort to encourage more exports from Zimbabwe, companies which export between 30 percent and 40 percent of their goods will face a tax rate of 20 percent, while companies exporting up to 50 percent of their goods will see a rate of 17.5 percent, and those exporting more than half of their production will enjoy a significantly reduced rate of 15 percent.

The government has also overhauled the rates applied to tobacco and alcohol, raising the tax per 1000 sticks of cigarettes from ZWD 15 to ZWD 20, while simultaneously dropping the duties on beer from 45 percent to 40 percent.

Photo By: CDKNetwork