FINANCE minister Mthuli Ncube once again failed to lift the
hopes of despondent Zimbabweans when he announced his mid-term budget policy
yesterday, the Daily News reports.
Among other notable
omissions, he failed to address how the country should deal with the United
States dollar following the growing rejection of the local currency by many
shops and other businesses.
Although Ncube
doubled the tax-free threshold for taxpayers — which will see those earning up
to $5 000 being exempted from paying tax — his critics said it was “too little
too late” as inflation had rendered the gesture meaningless.
“I propose an upward review of the tax-free threshold for
workers to $5 000, from $2 000, with effect from August 1 to cushion them,
after salaries were eroded by inflation.
“I also propose a tax exemption on risk allowance for
public sector health employees working on the frontline in the fight against
the Covid-19 pandemic,” the under-fire minister told the National Assembly
yesterday.
In addition, Ncube also
announced tax exemptions for the battered tourism sector, as well as firms that
had donated more than $100 000 towards Covid-19, as part of efforts to cushion
companies from the effects of the deadly virus.
However, few people
were charmed by the minister’s statement, which had been expected to address
the country’s two-tier pricing system, following the rebound of the US dollar
as the preferred trade currency nationwide.
Former Finance minister in the 2009 stability-inducing
government of national unity (GNU), Tendai Biti, said Ncube had “skirted the
issues everyone was hoping he would deal with decisively”.
“That was a cowardly presentation because he shied away
from confronting the elephant in the room by not acknowledging the fact that
the market has rejected the Zimbabwe dollar.
“He also refused to acknowledge that the 2020 budget has
been ravaged by inflation, hence there was scope for a supplementary budget —
especially in the face of the Covid-19 pandemic,” Biti told the Daily News.
“His cowardice is also reflected by the fact that he
realised that a supplementary budget would have entailed that he presents it in
real money terms, that is in US dollars — but he shied away from that.
“His statement was dishonest, especially the budget surplus
hot air he talks about when health workers are on strike.
“He enjoys listening to his voice and that explains why he
continues harping about a non-existent surplus,” Biti further ripped into
Ncube.
On its part, the Zimbabwe Congress of Trade Unions (ZCTU)
said there were no “positive take-aways” from Ncube’s review statement for
suffering workers.
“The tax threshold is meaningless unless he wants it to be
enjoyed by domestic and farm workers.
“We expect that the majority of workers earn above that ($5
000) given that the poverty datum line is now at $15 000.
“I don’t understand why he is ignoring the market reality
that it has re-dollarised. I am not sure they will win the war because what he
has done will not stop workers from striking.
“He should have addressed the issue around dollarisation,”
ZCTU secretary-general, Japhet Moyo, told the Daily News. In a further dose of
bad news for long-suffering Zimbabweans, Ncube said economic growth would
plunge to minus 4,5 percent this year — compared to his earlier prediction of
three percent growth.
He said this was due to the debilitating effects of the
Covid-19 pandemic and the drought which had ravaged the sub region. This comes
as Zimbabwe is experiencing its worst crisis in a decade, which has stirred
anger and restless among its populace. Daily News
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