Dr Prosper Chitambara
Diana Gondongwe
The Labour and Economic Development
Research Institute of Zimbabwe (Ledriz) has criticised the tax regime in
Zimbabwe which it described as a bane for the country quest to attract new capital
in the economy.
Research Institute of Zimbabwe (Ledriz) has criticised the tax regime in
Zimbabwe which it described as a bane for the country quest to attract new capital
in the economy.
Speaking at an engagement with the media
practitioners in Masvingo recently, Ledriz
senior researcher Dr Prosper Chitambara said heavy taxation coupled with inconsistent
policy pronouncements by government was militating against investment and
economic growth.
practitioners in Masvingo recently, Ledriz
senior researcher Dr Prosper Chitambara said heavy taxation coupled with inconsistent
policy pronouncements by government was militating against investment and
economic growth.
“High taxation is not good for any
economy and our government highly taxes its citizens but this will never improve the economy,” said Chitambara.
economy and our government highly taxes its citizens but this will never improve the economy,” said Chitambara.
He said there was evidence to prove that
the Zimbabwean economy was collapsing largely due to mismanagement of public
resources and gross financial indiscipline at government level.
the Zimbabwean economy was collapsing largely due to mismanagement of public
resources and gross financial indiscipline at government level.
Chitambara said an economy characterised
by high consumption and depressed production was unsustainable, and called for
reforms that can increase investor confidence in the productive sectors of the
economy.
by high consumption and depressed production was unsustainable, and called for
reforms that can increase investor confidence in the productive sectors of the
economy.
“We have a high consumption, debt-driven economy and this is not good for
a sustainable at all. Our government heavily relies on borrowing money and
printing more money but that will not help us in any way,” said Chitambara.
a sustainable at all. Our government heavily relies on borrowing money and
printing more money but that will not help us in any way,” said Chitambara.
He said the economic problems
Zimbabweans faced were largely self-inflicted due to the presence of selfish
politicians who care more about self-enrichment at the expense of shared prosperity
through economic growth.
Zimbabweans faced were largely self-inflicted due to the presence of selfish
politicians who care more about self-enrichment at the expense of shared prosperity
through economic growth.
“We have allowed politicians to manage
our economy and the government is now using the sanctions discourse as an
excuse for its internal failures while their cronies get richer by the day,” Chitambara said.
our economy and the government is now using the sanctions discourse as an
excuse for its internal failures while their cronies get richer by the day,” Chitambara said.
Participants at the engagement also
raised many issues affecting them including poor salaries that are heavily
taxed by the Zimbabwe Revenue Authority (Zimra), leaving them unable to make
long-term investments of their own.
raised many issues affecting them including poor salaries that are heavily
taxed by the Zimbabwe Revenue Authority (Zimra), leaving them unable to make
long-term investments of their own.
