Finance, Economic Development and Investment Promotion
Minister Professor Mthuli Ncube said this during the 2025 post-budget breakfast
meeting in Harare on Monday.
Minister Ncube said
in some instances, the Government was
already undertaking studies to see the impact of certain taxes on businesses.
“We have directed the Treasury to do a study on the impact
of the intermediated money transfer tax (IMTT) on businesses, and we are ready
to review based on the results of the studies.
“Therefore, I encourage more businesses to come forth with
their submissions on the impact of the IMTT.
“We have January and the midterm policy review, where we
could make some adjustments based on actual facts on the ground,” he
said.Business leaders contend that the 2 percent IMTT tax has hurt businesses’
performance, reducing profit margins, sales, and competitiveness.
They also say the IMTT has contributed to increased
overheads that include staff costs, electricity charges, rentals, bank charges,
cleaning expenses, and security charges.
The finance minister however said the tax measures were
meant for the good of the economy, including those relating to health issues,
protecting local industries, and the environment.
For instance, Minister Ncube noted that he had been under
pressure to close companies that produce plastic bags, but opted for a surtax
charge on all plastic bags instead.
“The budget has got some green aspects, such as the tax on
carrier bags. In other countries they have banned those plastic bags, but over
the years I have resisted that ban, but there has been a push; hence I said,
no, we would rather have a surtax on and not kill industries,” he said.
Minister Ncube said even the tax on fast foods was
progressive, as the resources would be deployed in the health sector.
“We saw that there is likely to be limited funding in the
health sector due to changes happening on the global landscape.
Therefore, the funds raised through the food taxes will go
a long way in bridging some of the gaps,” he said.
Minister Ncube added that promoting and incentivising the
development and investment of charging stations for electric vehicles was also
progressive green taxes that most nations have been looking into, and Zimbabwe
was no different.
The minister said the 2025 fiscal plan proposed to provide
incentives for local manufacturing, particularly in the automotive sector,
which includes car and bus assembly.
He said the initiative is part of broader efforts to
stimulate local industry and reduce import dependence. Herald
0 comments:
Post a Comment