Finance and Economic Development Minister Professor Mthuli
Ncube says the 2 percent intermediated money transfer tax has started bearing
fruit, with the money collected so far set to go towards recruitment of primary
and second school teachers and a host of other developmental projects.
Between December 1 and 26 last year alone, Government
collected $572,40 million through the 2 percent tax, exceeding the monthly
target by $129,1 million.
In line with its thrust to create jobs for citizens,
Government recently indicated that it was employing 3 000 teachers to improve
the teacher to pupil ratio, and also enhance the quality of education.
Further, Government is recruiting 351 new teaching and
non-teaching staff for universities and 167 staff members for the Midlands
State University (MSU).
Due to financial constraints, many institutions of higher
learning were failing to recruit more staff, leading to deteriorating services.
All the employees are set to be paid through proceeds from
the 2 percent tax, as Government tries to avoid unnecessary borrowing so as to
reduce both internal and external debt.
Prof Ncube told The Herald Business last Friday that the
tax was doing well and would go a long way in helping Government to fund its
operations.
“The 2 percent transaction tax initiated in October 2018
has started bearing positive results on the economy,” said Prof Ncube.
“So it has helped us on at least four things, which include
the expenditure on the recruitment of 3 000 additional teachers; the
recruitment of 350 plus university personnel, then also the issue of
devolution.
“The $310 million (announced in the 2019 Budget) for
devolution is going to be covered by the 2 percent tax and yesterday (last
Thursday), I was in Kanyemba and we know that the Kanyemba area alone is going
to be given $2 million out of the $310 million for that purpose.”
Government has already granted national project status to
the development of Kanyemba in Mbire District, Mashonaland Central Province.
Kanyemba, a large swathe of land in the northernmost part
of Zimbabwe along the Zambezi River on the border with Zambia and Mozambique,
also wants to achieve town status in the next five years.
Vice President Constantino Chiwenga, who has led several
delegations to Kanyemba in the recent past including last week to explore
development opportunities, says a greenbelt can be created in the area.
There are good soils that are suitable for the growing of a
range of crops such as avocados, maize, cow peas and sugar beans.
Prof Ncube also said proceeds from the 2 percent tax would
be channelled towards the critical education and health sectors.
“All those monies from the 2 percent tax will also go
towards that; devolution and the social sector. And then by being able to cover
those areas, we are able to run what we call a primary surplus on the Budget
front,” said Prof Ncube.
Simply put “primary budget surplus” means that tax revenues
exceed programme spending. Herald
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