Zimbabwe Taxation

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Write an analysis of the developments of the taxation system in Zimbabwe from pre to post colonial Zimbabwe (25)

The tax system currently enforced in Zimbabwe under the authority of the Income tax Act Chap 23.06 with Acts like the Capital Gains Act Chap 23.01, Finance Act Chap 23.04 and the Excise duties Act as complimentary. The system evolved from traditional ideologies perpetuated from pre pre-colonial era up to now. The incidence of tax from a traditional perspective occurred from as far as the Rozvi State who was allowed to maintain their power and control by the Portuguese Traders which resulted in the development of the
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Insurance premiums and medical expenses were also allowed as a deduction
The Pay as You Earn (P.A.Y.E) system of collecting Tax income was also adopted and it mainly operated with reference to an employed person. The definition of person in this regard mainly focuses on the natural person as it is the natural person and not the Juristic (for example Companies) that earn the employment income on which P.A.Y.E will be charged.
Companies were also taxed in their own capacity and were required to pay a standard rate of 7s. 3d. in the £. Special incentives for investment and exports were also given to benefit international trade and encourage investments in the companies established in the Zimbabwean Economy. Personal tax obligations were payable by individuals on a sliding scale ranging from £2 per annum to £12 per annum, this range was dependant on the income
Death duties were relatively low by world standards, and were payable on a sliding scale rising to a maximum of 2s. 6d. in the pound currency, which is reached on a taxable amount of approximately £42,000.
Stamp duties were set on numerous documents recording transactions between persons and on services provided at various registries. These included a transfer duty at the rate of £1 per cent, for the first £4,000 of the value of

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