Tobacco Workers Push For US$400 Tax-Free Salary Threshold Ahead Of 2027 Budget
Tobacco sector employees have petitioned the Zimbabwean government to increase the tax-free income threshold from US$100 (approximately R1,672) to US$400 (approximately R6,686) per month. The workers want Finance Minister Mthuli Ncube to consider the proposed increase when presenting the 2027 National Budget.
The Zimbabwe Tobacco Industrial Workers Union (ZTIWU) submitted the proposal as employees seek changes to the amount of money they can earn before paying personal income tax.
The petition comes ahead of the 2027 Budget, placing workers’ taxation and the rising cost of living on the agenda for Treasury.
Tobacco Workers Want US$400 Tax-Free Threshold
NewZimbabwe.com reports that ZTIWU petitioned Ncube on Wednesday, 11 November 2026, requesting that the tax-free threshold for foreign currency earners be increased to US$400 (approximately R6,686).
In a letter dated 11 November, union secretary-general Emmanuel Mariro explained why workers wanted the change.
Mariro said:
“Our proposal is informed by the increasing cost of living, which continues to place a heavy financial burden on ordinary workers and their families.”
He added that many employees were struggling to meet basic household expenses, including food, rent, school fees, transport and healthcare.
Zimbabwe’s Current PAYE Tax-Free Threshold
Zimbabwe’s existing monthly tax-free threshold is US$100 (approximately R1,672) for foreign currency earners and ZWG2,800 for those paid in local currency.
Employees earning above the applicable thresholds face Pay As You Earn (PAYE) tax rates ranging from 20% to 40%. A further 3% AIDS Levy is charged on the total tax payable.
Mariro also asked Treasury to exempt employees earning US$400 (approximately R6,686) or less from PAYE and other tax payments.
The union proposed a progressive taxation system that would offer greater protection to lower-income employees while maintaining fairness in revenue collection.
What Happens Next?
The proposal has been submitted ahead of the 2027 National Budget. Its implementation will depend on the Government’s consideration of the union’s demands.
ZTIWU stressed that it was not opposed to taxation but wanted a system that takes workers’ financial circumstances into account.
For now, the proposed US$400 threshold remains a request rather than an approved tax change.
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