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Writes Prof Gift Mugano
Parliament must reject the anti-people and anti-industry Budget that was presented by Finance and Economic Development Minister, Prof Mthuli Ncube on Thursday.
The proposed tax hikes and the move to exclude informal traders from the mainstream economy will bring more pain to the already impoverished people.
The decision to exclude traders without VAT certificates is very harsh and insensitive considering that more than 6 million people thrive on trading in the face of 85% formal unemployment and a drought of economic opportunities. These people, in their individual capacities, don’t have an annual sales turnover of US$25000 which is required to secure the VAT certificate.
This measure is expected to impact the manufacturing sector negatively because the informal sector helps them to push volumes, especially in manufacturing industries such as food and beverages (bread, ice cream, drinks, etc). In the bread sector, for example, the volumes are pushed by vendors and tuckshops (not supermarkets) which are now supposed to be excluded from the bread value chain. This will result in a drastic fall in sales which has a net negative effect on production and jobs.
Is Pro Mthuli Ncube aware of these dynamics and possibilities?
The following increases in taxes, levies, and fees are a thorn in the flesh for an already struggling population:
– more than 100% increase in toll fees will push up bus fares and transport costs 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
– The 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 plate fee hikes are again schemes put in place to milk the poor.
– the US$300 will be taxed come January 2024 – so insensitive to the underpaid civil servants who were expected a salary hike.
– The wealth tax reminds of the Rhodesian government which introduced the hut tax and Prof Mthuli Ncube admires the very same exploitative tax regime and introduces it again in “independent” Zimbabwe.
If Parliament is going to act in the best interest of the public, they must reject this budget and request Prof Mthuli Ncube to redo the budget and produce a pro-poor budget.
It is my prayer that ZANU (PF( and @CCC MPs unite on this one and reject this useless budget. If ZANU (PF) uses their majority vote to support this useless budget and overpower CCC by virtue of their numbers they are voting for more poverty in their rural constituencies where they got most of their votes.
In the same way, they are punishing the 6 million people in the informal sector as they will be endorsing their exclusion from the manufacturing sector value chains.