A new Finance (No 3) 2019 Bill sailed through the National Assembly on Tuesday evening and will give effect to fiscal measures in the 2020 National Budget.
The Bill compels people who cannot prove that they sold their assets in Zimbabwean dollars to pay taxes in United States dollars. Part of the Bill reads:
In respect of any sale of a specified asset that is purported to have been sold for Zimbabwe dollars, it shall be presumed that the specified asset was paid for in foreign currency at the US dollar market valuation of the specified asset on the date of the sale, and that the capital gains tax thereon shall be paid in US dollars accordingly, unless the seller provides documentary proof satisfactory to the commissioner that the specified asset in question was sold for Zimbabwe dollars.
This comes when the country has through Statutory Instrument 142 of 2019 outlawed the use of all foreign currencies for domestic transactions.
Zimbabwe has a huge scarcity in foreign currency, a scenario that is just bad considering that the country’s industry is collapsed and businesses, government and even individuals import most of the commodities.
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