Out­cry over new tax regime

Chronicle (Zimbabwe) - - Front Page -

He said pro­duc­ers and re­tail­ers were most likely to pass this cost to con­sumers.

“I think it was an er­ror or fin­ger prob­lem and should be have been 0.02 cents per dol­lar. I am sure it will be re­tracted or clar­i­fied soon. Zim­babwe is on emo­tive and sen­si­tive eco­nomic ground at present, the con­text must be ap­pre­ci­ated. This has cast a cloud on what could have been a fair Mone­tary Pol­icy State­ment that gets us started. This needs to be dis­pelled ur­gently,” said Mr Moyo.

There is also a feel­ing that the new tax regime could dis­cour­age peo­ple from us­ing elec­tronic money, while some sug­gested that Gov­ern­ment should have con­sulted be­fore an­nounc­ing the new rate.

“There is a thought that this is a way of mop­ping up ex­cess liq­uid­ity or de­ter­ring those who us­ing RTGS for par­al­lel mar­ket ac­tiv­i­ties, but this will also hurt le­git­i­mate busi­ness and drive peo­ple away from elec­tronic money, the very thing we are try­ing to en­cour­age in a cash­less repub­lic. We have to re­duce liq­uid­ity in a way that doesn’t in­crease costs of do­ing busi­ness and prices to the con­sumer,” said Mr Moyo.

Con­sumer Coun­cil of Zim­babwe (CCZ) ex­ec­u­tive direc­tor Ms Rose­mary Siy­a­chitema said they were still re­view­ing the mone­tary pol­icy. Mem­bers of the pub­lic who spoke to The Chron­i­cle also ex­pressed dis­may at the new tax and urged Gov­ern­ment to re­view the de­ci­sion. Some took to so­cial me­dia plat­forms to ex­press their con­cerns. Mr Mthabisi Sibanda, an ac­coun­tant said the two per­cent tax was very high con­sid­er­ing that there is no cash cir­cu­lat­ing.

“I think this is too much. Maybe Gov­ern­ment is try­ing to find a way to get peo­ple to bring cash back into cir­cu­la­tion. We are us­ing elec­tronic money to pay Zesa, buy food, fuel among other things on a daily ba­sis and for them to deduct two per­cent on all those trans­ac­tions is not fair. We are al­ready strug­gling with­out cash,” he said.

Ms Gla­dys Dube from Nketa 6 said the new tax would frus­trate plas­tic money us­age.

“When cash short­ages started we were told to em­brace plas­tic money but this is against the spirit of em­brac­ing it. We hardly ac­cess bond notes and se­ri­ous tax­a­tion on the in­flated elec­tronic trans­ac­tions doesn’t make our lives any bet­ter. It’s not that we are we are only go­ing to make a sin­gle trans­ac­tion a day,” said Ms Dube.

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