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The Government, through the Ministry of Information, Publicity and Broadcasting Services, says the 2024 national Budget proposals presented by Finance Minister Mthuli Ncube on 30 November are still going through parliamentary processes and have not been adopted.
Zimbabweans were shocked by some of the measures proposed by Ncube such as hiking passport, toll, and vehicle registration fees.
Ncube also proposed to increase the fuel levy, introduce a sugar tax, and impose a “wealth tax” on persons owning a home worth more than US$100 000, among other unpopular measures.
In a statement, the Ministry of Information, Publicity and Broadcasting Services said the Government had noted the concerns raised bt citizens. Read the statement:
<blockquote>
The Ministry of Information, Publicity and Broadcasting Services would like to inform the people of Zimbabwe that the 2024 national Budget proposals presented last week by the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube are still going through parliamentary processes.
Parliament has set up committees to take into account the genuine concerns of the people of Zimbabwe, and the civic and business community.
The Budget process goes through various stages against the background of estimated expenditure and expected income estimates.
The setting up of committees makes the Budget process purely a stakeholder-driven approach and involves debates in the National Assembly and Senate.
The Budget proposals are guided by the National Development Strategy 1 (NDS1) and the people of Zimbabwe.
The expected revenue inflows, the estimated expenditure priorities and the Constitution of Zimbabwe are the bedrock upon which the national Budget is formulated.
The rights and freedoms of the people of Zimbabwe will not be violated by the budget-making process.
Currently, as a Government, we are committed to the stakeholder-driven approach to national Budget formulation to improve the standards of living for the people of Zimbabwe.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Budget-making Processes Won't Violate Zimbabweans' Rights - Govt

Bulawayo Mayor David Coltart said that if the “wealth tax” proposed by the Minister of Finance, Economic Development, and Investment Promotion Mthuli Ncube in the 2024 National Budget is levied, it must be paid directly to local City and Town Councils so that they can determine how to use it.
In his 2024 National Budget presentation on Thursday, Ncube said the wealth tax will be levied at a rate of 1% of market values of residential properties with a minimum value of US$100 000.
Coltart argued that the wealth tax is not only problematic in principle, but also that there is no guarantee the central government will remit the funds to local authorities. He said:
<blockquote>
My greatest concern about Professor Ncube’s proposed new tax on properties is that it impinges upon Local Councils’ right to levy rates against property owners within Cities.
Whilst the tax is in principle problematic it is made worse because it will go to the central government with no guarantee that the money will come back fairly.
The City of Bulawayo has already suffered greatly since car licence fees were sent to ZINARA rather than BCC.
Likewise, although the City of Bulawayo built 5 dams using rate payers’ money it now has to buy the water stored in those dams from ZINWA.
The fact is that we get a fraction of the money paid to ZINARA which is impacting our roads. The same applies to ZINWA.
The City could have built more dams if it had been able to invest the money it pays to ZINWA.
Now the government wants to take further money based on the value of houses based in Bulawayo.
We have no guarantee that this money will come back to Bulawayo – indeed history shows that it probably won’t come back fairly.
For that reason, this new tax is completely unacceptable. If it is to be levied then it must be paid directly to local City and Town Councils so that they can determine how to use it.
If the principle of devolution is to be respected then local authorities must be given the financial power to develop the Cities/Towns they are responsible for.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Coltart Says "Wealth Tax" Should Be Paid Directly To Local Authorities

A local Civil Society Organisation (CSO) has demanded the urgent introduction of wealth tax to facilitate the trickledown effect of financial resources to the country’s poor section in a bid to reduce poverty levels.
The Zimbabwe Fight Inequality Alliance, a broad-based 18 member NGOs network’s spokesperson, Janet Zhou declared a week of action, piling pressure on the government to introduce a tax for the country’s wealthiest. She told NewZimbabwe.com:
<blockquote>
We are calling for the introduction and implementation of a wealth tax to facilitate the redistribution of wealth from people who have too much of it in order to meet the needs of the suffering majority. The abolishment of unjust and harmful tax incentives to multinational corporations is a long overdue outcome of a stakeholder consultative process.
 Poverty in Zimbabwe has risen to unsustainable levels surging to 7,9 million people plunging into extreme poverty. Surprisingly, the rich, political elites and wealthy corporations registered an incredible rise in wealth and assets whose origins are unfortunately a result of illicit public transfers into the hands of a few individuals.
</blockquote>
The remarks coincided with the commemorations of the Global Week of Action against Inequality which kicked off on January 15, 2022, which is also running a similar theme, Time To Tax the Rich and build People’s Recovery Plans for Covid-19.
Zhou stressed that it is time the government introduced a COVID-9 Windfall Tax for corporates and individuals who made huge profits since 2020 to fund a just and equitable response to COVID-19-induced poverty and suffering.
She also proposed the urgent scrapping of the 2% tax or the alternative of pegging it above the Poverty Datum Line (PDL) which currently stands at $48 054 for a family of six.
Zhou also called for the acceleration of lifestyle audits by the Zimbabwe Anti-Corruption Commission (ZACC) together with the Zimbabwe Revenue Authority.
More: <a href="https://www.newzimbabwe.com/csos-pressure-gvt-to-introduce-tax-for-the-rich/">NewZimbabwe</a>

Civil Society Organisations Call For Introduction Of Wealth Tax

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