Zimbabwe: Tobacco Sector Employees Petition Government Over U.S.$400 Tax-Free Threshold

What the report says

Zimbabwe’s Tobacco Industrial Workers Union has asked Finance Minister Mthuli Ncube to raise the personal tax-free threshold to US$400 in the 2027 national budget. The request was reported by New Zimbabwe and distributed by AllAfrica, based on a letter dated 11 November 2026 from union secretary general Emmanuel Mariro.

According to the report, the union argues that the current tax-free levels — US$100 a month for foreign-currency earners and ZWG2,800 for local-currency earners — are too low given rising living costs. It says workers are under pressure from expenses such as food, rent, school fees, transport and healthcare, and that low-income employees should be able to keep more of what they earn.

The union also called for exemptions from PAYE and related taxes for employees earning US$400 or less per month, while saying it is not opposing taxation in principle. Instead, it is urging a more progressive system that would protect vulnerable workers while still allowing the government to collect revenue. The appeal reflects broader debates in Zimbabwe over pay, inflation and the impact of taxation on household purchasing power.

If adopted, the proposal could affect take-home pay for workers and reduce tax receipts from lower earners, though the report did not indicate whether the finance ministry has responded.