This will be a welcome move to most workers as wages and salaries of most Zimbabweans have lagged behind the exchange rate fluctuations.
The Zimbabwe dollar which was trading at par with the United States dollar a year ago is now down to 14:1.
The government recently raised the minimum wage for civil servants to $1 023 which meant that this was subject to tax but is not exempt.
The move is effective 1 August.
The tax relief effectively means that the government has to rely more on the 2 percent electronic transaction tax which was nullified by the High Court recently but remains in force because it was approved by Parliament.