OPPOSITION legislators yesterday accused Finance minister, Mthuli Ncube, of condemning millions of citizens to a life of misery with an anti-people budget containing a basket of tax increases beginning January.
Ncube presented a ZWL$58,2 trillion 2024 budget at the New
Parliament Building in Mt Hampden saying the domestic economy is projected to
grow by 3,5% next year.
The budget blueprint has a raft of new taxes and increases
on fuel and a sugar levy, tollgate, vehicle registration and passport fees,
mansion tax and a surcharge for vehicle imports, among others.
Citizens Coalition for Change (CCC) legislators said the
budget was uninspiring and anti-people as it increased the cost of doing
business and living at a time when millions were failing to make ends meet.
Marondera Central legislator, Caston Matewu, said this was
the worst budget ever presented.
“This is a very anti-people budget,” Matewu said.
“This budget has various taxes on everything that push up
the cost of services and goods. This government wants to get money by stealing
from the people. We will oppose this budget when we start debating it next
week.”
Dzivarasekwa legislator Edwin Mushoriwa said the budget was
punitive.
"This budget punishes the poor people. If you look at
the budget deficit, the minister has failed to come up with progress(ive) steps
of raising revenue in a proper manner and this is not right,” Mushoriwa said.
Ncube also announced a ZWL$2,4 trillion budget for social
safety programmes targeting the poor, but CCC legislators said this was not
enough when the majority were failing to afford basics.
Ncube also reviewed the tax-free threshold on incomes to
ZWL$750 000 from ZWL$500 000.
However, inflation has rendered the move mute because of
the rising cost of living.
CCC chief whip, Clifford Hlatwayo, said the poor would
become poorer with the raft of new taxes.
“This is a zero budget. Ncube did not include or consider
the plight of the poor.”
Zanu PF legislators, however, defended the budget saying
Ncube had no option but to put in place tough measures to reduce the budget
deficit and restore fiscal discipline.
Zanu PF chief whip Pupurai Togarepi said:" The budget
is so inclusive of everyone, especially on taxes. Everyone has to pay tax; the
wealthy are going to pay tax as well. It’s a budget that has everything that we
want as Zimbabweans."
Economic analysts criticised the budget saying it does not
address Zimbabwe's never-ending socio-economic crisis.
Analyst Tafadzwa Bvunzawabaya said the budget would not
help to reduce the budget deficit or stimulate economic growth.
"The budget is based on unrealistic assumptions about
economic growth and revenue collection," Bvunzawabaya said.
"The government is simply borrowing more money to
finance its spending, which is unsustainable in the long term."
Ncube has also introduced a new wealth tax to ensure that
high-income earners pay taxes.
“In order to ensure that every person contributes to the
fiscus in line with their levels of income, I propose to introduce a wealth tax
levied at a rate of 1% of market values of residential properties with a
minimum value of US$100 000,” the minister said.
The new tax triggered debate on social media yesterday, but
Information permanent secretary Ndavaningi Mangwana said it was long overdue.
“It’s a recognition of the fact that there are people with
high value properties who have not paid any tax on the income from which
they bought or built such mansions,”
Mangwana argued on X.
“In Zimbabwe, there are many such people. A variant mansion
tax has been proposed in Zimbabwe. We are not alone in this. Many states in
America charge for having a high value home.
“This will catch many and hence many are going to express
opposition to it. But it's natural for people to resist and try to avoid
taxation. And its natural for government to insist and enforce.” Newsday
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