By Correspondent
Parliament has proposed raising the tax-free income threshold from US$100 to US$150 and cutting transaction taxes, as demands for cost-of-living relief dominate the 2027 Pre-Budget Seminar.
The proposals are contained in a consolidated report from nationwide public consultations presented by the Chairperson of the Portfolio Committee on Budget, Finance and Investment Promotion, Lincoln Dhliwayo.
The seminar, running from Wednesday to Saturday is meant to shape Parliament’s recommendations ahead of the 2027 Budget presentation by Finance Minister Prof Mthuli Ncube on 19 November.
According to Dhliwayo, the call to raise the tax-free threshold was the most consistent demand across all provinces.
“Anyone who earns $100 is not taxed anything.
“People were raising, they wanted that threshold to be raised up to $150,” he said.
Inflation Erodes Gains
Government raised the threshold to US$100 in the 2026 Budget.
However, citizens argue inflation has eroded its impact, with low-income earners still taking home below survival wages after PAYE deductions.
On fuel, stakeholders proposed that Government retain subsidies or reduce levies to keep petrol and diesel below US$2 per litre.
The report says participants from agriculture, mining, transport and SMEs warned that any increase would trigger price hikes across the economy.
The third proposal targets the Intermediated Money Transfer Tax (IMTT).
Parliament heard that the current rate of up to 2% on electronic transactions discourages formal transactions and penalises small businesses.
Further Cuts
Citizens want a further cut from the 1.5% ZiG rate introduced in 2026 to 1% or less for low-value transactions.
The proposals seek to make the local currency, ZiG, more accessible and affordable, and to reduce production and transport costs.
Finance Minister Ncube and Reserve Bank Governor Dr John Mushayavanhu are expected to respond to the proposals during the seminar.
Treasury has previously cautioned that tax cuts must be weighed against revenue needs.
Government collected ZiG137.8 billion against a ZiG124.4 billion target at mid-year 2026.
Parliament will adopt a final position paper on Saturday.
Under Statutory Instrument 153 of 2026, the 2027 National Budget must be presented no later than the third Thursday of November.
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