Re­view of two per­cent tax

The Sunday Mail (Zimbabwe) - - FRONT PAGE -

GOVERN­MENT will re­view the two per­cent trans­ac­tional tax on elec­tronic money trans­fers to make it sen­si­tive to the needs of both busi­ness and con­sumers, Pres­i­dent Em­mer­son Mnan­gagwa has said.

The Head of State and Govern­ment said a new law was be­ing drafted to deal with “un­ex­plained wealth and de­posits” af­ter which new tax mea­sures would be an­nounced.

In his weekly col­umn in The Sun­day Mail, Pres­i­dent Mnan­gagwa said his Govern­ment would al­ways lis­ten to busi­ness.

“Govern­ment took to heart the cry that the two per­cent trans­ac­tional tax has com­pounded the tax bur­den for both busi­ness and for the con­sumer.

“Once the le­gal in­stru­ment we are craft­ing against un­ex­plained wealth and de­posits is in place, new mea­sures will be an­nounced to re­view the tax which, among other con­sid­er­a­tions, had been oc­ca­sioned by il­licit ac­tiv­i­ties in the fi­nan­cial ser­vices sec­tor,” said Pres­i­dent Mnan­gagwa.

To en­sure greater co­he­sion, a lo­cal busi­ness ad­vi­sory body made up of rep­re­sen­ta­tives sec­onded from in­dus­try is be­ing cre­ated.

Fur­ther, an in­ter­na­tional ad­vi­sory body will be formed to keep the Pres­i­dent “keyed on in­ter­na­tional busi­ness and in­vest­ment is­sues”.

“To nar­row the com­mu­ni­ca­tion gap, I have em­braced the idea of a Busi­ness Coun­cil to

ad­vise me and Govern­ment. At the Mon­day meet­ing (with busi­ness rep­re­sen­ta­tives at State House, Harare), I re­quested that busi­ness for­ward names so that such an ad­vi­sory body is ur­gently con­sti­tuted.

“Be­cause we op­er­ate in the global mar­ket, I have also de­cided to cre­ate an­other ad­vi­sory body com­pris­ing in­ter­na­tional ex­perts who will keep me keyed on in­ter­na­tional busi­ness and in­vest­ment is­sues.

“The catch­ment for such a team will be global, both ge­o­graph­i­cally and by way of the range of ex­pe­ri­ence. Zimbabwe must im­prove her in­ter­na­tional ap­peal for FDI,” said the Pres­i­dent.

Pres­i­dent Mnan­gagwa said his Govern­ment would not con­sider poli­cies that eroded wealth, wages, sav­ings and pen­sions.

“A key con­sid­er­a­tion of both mon­e­tary and fis­cal pol­icy must be to se­cure the val­ues of wealth, earn­ings, wages and sav­ings in the econ­omy. We should never make or al­low de­ci­sions that erode value, as hap­pened in 2008. On this one mat­ter we stand firm and un­moved. No pol­icy will be en­ter­tained whose net ef­fect is to un­der­mine value in the econ­omy.”

Indications are that some of the mea­sures Pres­i­dent Mnan­gagwa is speak­ing of will be cap­tured in the 2019 Na­tional Bud­get that will likely be pre­sented in late Novem­ber.

Fi­nance and Eco­nomic De­vel­op­ment Min­is­ter Pro­fes­sor Mthuli Ncube has said he is sim­pli­fy­ing the tax struc­ture and com­ing up with in­cen­tives for SMEs to con­trib­ute to the fis­cus.

— Pic­ture: Tawanda Mudimu

Pres­i­dent Em­mer­son Mnan­gagwa is in­tro­duced to In­dia’s For­eign Sec­re­tary Mr TS Tir­imurti by that coun­try’s vis­it­ing Vice-Pres­i­dent Venka­iah Naidu at State House, Harare yes­ter­day.

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