By Staff Reporter
The government has put in place measures to consolidate the Zimbabwe dollar’s position as a currency of reference through gazetting of a Finance bill which will amend the income tax management for employees being paid in the local currency and the US Dollar.
According to the gazetted Finance bill HB 16 of 2022 the taxable income for employees that receive their salaries partly in United States Dollars and in Zimbabwe dollars will be taxed as if the income is denominated by the Greenback.
It further states that the Zimbabwe dollar portion will be converted at the prevailing interbank exchange rate.
In the wake of a currency reform process, economic analysts have described the Finance bill as critical in reinforcing sustainable economic recovery and resilience as well as reconciling fiscal and monetary cohesion.
The move is largely expected to reduce possibilities of both tax evasion and avoidance which has been problematic under the previous income tax management regime, as the new measures will bring transparency, efficiency and accountability in the collection and computation of income tax as a single currency is administered.
