- Taxation soared to ZWL21.8 billion from ZWL10.8 billion
- This was a 111% increase
- Monetary loss widened to ZWL38 billion from ZWL24 billion
Harare- CBZ Holdings, a ZSE-listed diversified outfit’s taxation charges more than doubled by 111% to ZWL21.48 billion during the full year ended 31 December 2022 from ZWL10.8 billion in the same period in 2021, the Group’s latest FY2022 financial results show.
This is an indication of an aggressive tax regime policy pursued by the government, which is somehow suffocating corporates.
Zimbabwe boasts a corporate tax of 24.75%, a 15% VAT, a 3% Aids levy and an aggressive-custom duties policy. Corporates further pay custom duties and withholding tax while pay-as-you-earn (PAYE) tax remains substantial. Zimbabwe presently operates on a source-based tax system. This means that income from a source within, or deemed to be within, Zimbabwe will be subject to tax in Zimbabwe unless a specific exemption is available. The maximum rate was 30.9 % and the minimum was 24%.
Despite various monetary and fiscal policies implemented by the government to ease the doing of business, the Group said the operating arena remained tough, despite posting improved after-tax-profit, revenue, total deposits and advances.
“In Zimbabwe, the operating environment was intermittently volatile during the second quarter of the year,” the Group’s chief executive officer, Blessing Mudavanhu said.
The Group further succumbed to a high monetary loss of ZWL38 billion from ZWL24 billion last year. This was a 58% increase in the loss of value of money.
Interest expenses soared to ZWL13 billion from ZWL9 billion in the comparative year.
However, total deposits and advances grew to ZWL680 billion and ZWL176 million from ZWL451 billion and ZWL192 billion respectively.
The Group’s interest income was almost doubled by the non-interest income as banks in Zimbabwe turns away from the traditional way of increasing benefits through interest charges due to the failure of the banking sector, currency depreciation, scarcity of the AUS dollar and lack of confidence from the public in the banking sector. Interest income grew to ZWL ZWL87 billion from ZWL74 billion while non-interest income soared to ZWL179 billion from ZWL79 billion. This was a 129% uptick compared to 2021.
Resultantly, after-tax profit increased to ZWL33 billion from ZWL26 billion last year. Total comprehensive income grew to ZWL43 billion from ZWL32 billion.
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