Govt re­view­ing two per­cent tax

Sunday News (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.

e 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 and Sun­day News, 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”. 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.

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