Mthuli Ncube Slashes Proposed Passport Fee Hike in Late-Night Budget Session
Finance Minister Mthuli Ncube found himself in a late-night budget session in parliament, making significant revisions to several tax proposals within Zimbabwe’s 2024 national budget. Notably, amidst intense scrutiny and pressure, Ncube scaled back a previously announced passport fee increase, bowing to public sentiment and reducing the proposed hike from US$200 to US$150.
This means that from 1 January 2024, a Zimbabwean passport will cost US$150, a 25 percent increase from the current US$120.
The Finance Minister said,
“On passport fees, we have listened carefully to the contributions from the portfolio chairpersons and Hon. Members that the US$200 is on the high side, we agree with that. It is just that when we were having the discussions about modernising our borders, we wanted to be the first country outside Dubai to have an unmanned border post where you can walk in because now we have an e-passport with a chip in it
“You can walk in and the gates open your passport is read. You do not talk to anybody. We want that equipment here by end of 2024. We have to be modern. That is what motivated us. It is the kind of thinking to say we need resources to support the ministry of home affairs and we thought that increasing passports was one way to do this.
“Someone proposed that rather than US$120 for an ordinary passport, let us make it US$150. It is a proposal, but for the express passport, the 24-hour passport, anyone who needs it urgently is often those who can afford it. That one should be US$250. I know one Hon. Member who proposed US$350, but let us make it US$250 and I think US$250 is okay,” as per Zimlive.
Toll Fees and Wealth Tax Adjustments
Beyond the passport fee adjustment, Ncube also retracted earlier plans for a substantial toll fee increase. Initially proposing a 150 percent hike, he revised it down to 50 percent during the session. Addressing concerns, Ncube stated, “We have lowered these toll fee increases.”
The finance minister faced considerable opposition over the proposed 1 percent wealth tax. Responding to the public and parliamentary feedback, significant alterations were made. The tax will now solely impact secondary homes valued at a minimum of US$250,000, with a maximum cap of US$50,000 annually for properties surpassing the US$5 million mark. Primary residences remain exempt from this levy.
Parliamentary Turmoil and Final Outcome
The session was not without its disruptions. Citizens Coalition for Change (CCC) MPs faced ejection and a subsequent four-sitting ban following disruptions after a new MP announcement. Ultimately, the budget passed with only Zanu PF MPs present, highlighting the contentious nature of the proceedings.
Future Considerations and Ncube’s Perspective
Looking ahead, Ncube expressed openness to further adjustments, particularly regarding toll fees’ geographical differentials: “We will look into this. It sounds like a noble proposal… We want it to be fair and reflect the fact that the work here we do not want to overly penalise those individuals.”
In a final statement, Ncube highlighted the motivation behind these adjustments, stressing the need for resources to modernise border control: “We wanted to be the first country outside Dubai to have an unmanned border post where you can walk in because now we have an e-passport with a chip in it.”
Conclusion
The late-night budget session, marked by revisions and tensions, culminated in crucial adjustments to proposed tax plans. Finance Minister Mthuli Ncube’s decision to scale back the passport fee hike and amend toll fees and wealth tax reflects a responsive approach to public and parliamentary concerns.
