Govt Has Actually Increased Austerity Measures - Chartered Banker

Persistence Gwanyanya (PG), founder of the Bullion has observed that contrary to public expectation, the government has not eased austerity measures. Recently, government officials issued contradicting statements with regards the austerity measures. Foreign Affairs Minister, Sibusiso Moyo, said that the nation should brace for three more tougher years. The president, Emmerson Mnangagwa and Reserve Bank of Zimbabwe Governor, Dr John Mangudya, however later said that austerity measures were going to be eased by year-end. Speaking during an interview with the Herald Deputy News Editor Africa Moyo (AM), Gwanyanya said that the government actually extended measures to previously left out sectors of the economy. Below are excerpts from the interview.

AM: Is there enough relief from austerity measures, especially for the ordinary man?
PG: Whilst as ordinary people we expected some significant relief from austerity measures, the circumstances at the moment dictate otherwise. Treasury has remained hard on its taxation stance with only small adjustments on the 2 percentage intermediate tax. The small adjustment to the minimum amount chargeable from ZWL$10 to ZWL$20 and maximum charge to ZWL$15 000 from ZWL$10 000 ably demonstrate this. In fact, Treasury has actually extended this tax to mobile money transfer through agent lines, ostensibly to deal with parallel market for currencies. However, the doubling of the minimum taxable income to ZWL$700 will provide moderate tax relief to the overburdened working class.

It was imperative that, as the nation austere, Treasury beefs up the social safety nets to cushion the vulnerable members of society and help them withstand economic hardships therefrom.

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