… As Mthuli proposes to bleed the poor through taxes
Beverly Bizeki
Barely four months into office after wooing the general public to vote them into office and making empty promises, Zanu PF is proposing oppressive taxes in the 2024 budget to bleed the already poor public reminding people why Chimurenga war was fought.
Some of the major highlights of the budget include household tax, high tollgate fees, high passport fees, and beverage taxes.
Commenting on the budget on her post on X, Citizens Coalition for Change (CCC) Member of Parliament for Mount Pleasant and former spokesperson Fadzayi Mahere said the budget was anti people and hostile.
“The entire budget is anti-people. Why would you punish someone who is trying to register their motor vehicle by charging US$500 for that simple administrative task? Why is the amount not in ZWL? When it comes to taxing us they want USD. When it comes to health, education and public service spending, they denominate in Zim Dollars. It’s a mess we need new leaders.
“The attack on new businesses is staggering. The value added tax threshold has now been reduced to US$25 000 from US$40 000. In simple terms this means that any small business that makes an average of US$ 2100 per month will now have to register for VAT (Value Added Tax).
“When we say the budget is anti-people this is what we mean, government refuses to pay municipal rates to local authorities. Currently government is the biggest debtor in most councils. Government owes City of Harare $25BN, City of Bulawayo $18BN, City of Masvingo $3BN and Chiredzi Municipality $500M.
“They use council services but refuse to pay. The same government is imposing a ‘wealth tax’ on homeowners for simply breathing in their homes. No service, no rational basis, nothing but the desire to inflict pain. The budget is anti-people. It’s a mess,” said Mahere.
Director Centre for African Governance and Development Professor Gift Mugano said the budget was anti people and anti-industry and must be rejected in parliament.
“Parliament must reject the anti-people and anti-industry budget which was represented by Ncube yesterday. The following increases in taxes, levies, and fees are a thorn in the flesh for an already struggling population.
“More than 100 percent increase in toll fees will push up bus fares and transport cost for the commuting public. The rural folks and pensioners will suffer the most as the timing of this policy measure is coinciding with a devastating drought- they will have to bear with these new measures over and above their struggle to put food on the table.
“Introduction of levies on beverages with sugar is again insensitive as these are the drinks of the poor and our children. Passport and vehicle number plates fees hikes are again schemes put in place to milk the poor. The US$300 will be taxed come January so insensitive to the underpaid civil servants who were expecting a salary hike,” said Prof Mugano.
He further said the wealthy tax was a resuscitation of the hut tax in the Rhodesian government.
“Wealth tax reminds of the Rhodesian government which introduced the hut tax and Ncube admires the very same exploitative tax regime and introduces it again in independent Zimbabwe,” he added.
Renowned journalist Hopewell Chin’ono condemned the taxes and said the ‘hut tax’ was just a disproportionate tax on the already burdened citizens.
“You don’t tax wealth or savings, you tax earnings, an old couple is earning nothing in their home in Chisipite or Hatfield, a roof over their heads is a human right not a luxury to be taxed. The state should be providing housing and not taxing those that have done so for themselves under difficult economic circumstances.
“This ‘hut tax’ will also stop property ownership for those already struggling to meet the basic necessities of life like healthcare and daily upkeep,” he said.
Political commentator Dr Takavafira Zhou said while a pensionable salary was welcome, the number of taxes introduced worsened the lives of the people particularly teachers
“The budget is saddening to the general populace of Zimbabwe particularly teachers with a number of taxes, the whole essence of a one percent tax on property, toll fees and increase of vehicle licenses you can tell that those who own will transfer the burden to lodgers who are apparently our teachers and the increase of transport costs, as much as we are happy that the allowance US denominated allowance is now a salary and would also cater for the pensionable period we are not happy about the quantum that the teachers would get since it will be subject to taxes and teachers will suffer.
“Prof Ncube has simply taken us back to the 1884 period saddled with a lot of taxes and overburdened by the elite and the future is bleak. The new dispensation promised Zimbabweans a new car in terms of livelihoods but if the new budget is anything to go by it is clear that he is taking us to the 19th century whereas we are in the 21st century and his prescription is like a treatment that treats a disease by killing the patient so the 2024 budget is atrocious and would worsen the plight of the civil servants in particular teachers.
“We do not see any positives emanating from such an atrocious budget and it is unfortunate that Prof Ncube has decided to overburden the general populace of Zimbabwe at a time we hope that a budget would better the livelihoods of the general populace of Zimbabwe,” said Dr Zhou.
Ncube presented his ZWL 58.2 trillion budget to parliament on November 28 and the budget has since sparked outrage from all corners in the country because of the taxes included in the budget.
Some of the sections that have caused debate among citizens include an upward review of toll fees for premium roads, US$0.02 per gram of sugar contained in beverages, taxing of USD allowance for civil servants that will be turned into a pensionable salary, increased passport fees and a housing tax
