News / Education
Teacher's strike looms over taxation of incentives
01 Nov 2011 at 04:32hrs | Views
THE taxation of teachers' incentives by the Zimbabwe Revenue Authority has caused panic among educators, with unions threatening to call for a strike as pupils write public examinations.
Education, Sport, Arts and Culture Minister David Coltart said yesterday that Zimra's move should be stopped forthwith to avoid further damage to the sector.
Economists said Zimra's move was unprecedented and called for the review of the Income Tax Act to make teachers' incentives tax-free.
Teachers' unions castigated Zimra, saying more teachers would leave the profession if the taxes were not reversed.
Teachers' Union of Zimbabwe chief executive Mr Manuel Nyawo said the taxation of the incentives has brought anxiety in schools.
Minister Coltart said the education sector was still recovering and the taxation of incentives would result in a de-motivated workforce.
Minister Coltart said he would soon meet his Finance counterpart Tendai Biti over the matter.
Zimra is applying the Pay-as-You-Earn tax to teachers receiving incentives, arguing that the educators are part of the mainstream workers who earn income that should be taxed.
The incentives are considered as double pay and should be declared for taxation.
Zimra is applying Section 8 of the Income Act (Chapter 23:06), which calls for the taxation of extra income. Industrialist and chairman of the Parliamentary Committee on State Enterprises and Parastatals, Mr Larry Mavima, said Government, through the Finance Ministry, should review the Income Tax Act and make the incentives tax free.
He said incentives were making "life easier" for Government in terms of salaries and should be accommodated in a tax free manner.
Teachers said the matter could only be put to rest through protests.
Zimbabwe Teachers Association chief executive, Mr Sifiso Ndlovu, said Zimra should find other alternatives of improving revenue inflows.
"They should spare the education sector which has suffered for long," he said.
"Doing this without consulting is a clear sign of cruelty and the concerned parties should resolve the matter before it is too late in the schools."
Progressive Teachers Union of Zimbabwe secretary general, Mr Raymond Majongwe, said there would be a "sad ending" to the incentives debate if there was no political intervention.
"It's unfair for teachers to be victimised when they are already victims," he said. "If the situation goes on unabated, it will be chaotic. No one wants to serve for free. That is the reason why we are encouraging dialogue."
Teachers' incentives have been a controversial matter and several meetings have been held to determine whether or not to abolish them.
Education, Sport, Arts and Culture Minister David Coltart said yesterday that Zimra's move should be stopped forthwith to avoid further damage to the sector.
Economists said Zimra's move was unprecedented and called for the review of the Income Tax Act to make teachers' incentives tax-free.
Teachers' unions castigated Zimra, saying more teachers would leave the profession if the taxes were not reversed.
Teachers' Union of Zimbabwe chief executive Mr Manuel Nyawo said the taxation of the incentives has brought anxiety in schools.
Minister Coltart said the education sector was still recovering and the taxation of incentives would result in a de-motivated workforce.
Minister Coltart said he would soon meet his Finance counterpart Tendai Biti over the matter.
Zimra is applying the Pay-as-You-Earn tax to teachers receiving incentives, arguing that the educators are part of the mainstream workers who earn income that should be taxed.
The incentives are considered as double pay and should be declared for taxation.
He said incentives were making "life easier" for Government in terms of salaries and should be accommodated in a tax free manner.
Teachers said the matter could only be put to rest through protests.
Zimbabwe Teachers Association chief executive, Mr Sifiso Ndlovu, said Zimra should find other alternatives of improving revenue inflows.
"They should spare the education sector which has suffered for long," he said.
"Doing this without consulting is a clear sign of cruelty and the concerned parties should resolve the matter before it is too late in the schools."
Progressive Teachers Union of Zimbabwe secretary general, Mr Raymond Majongwe, said there would be a "sad ending" to the incentives debate if there was no political intervention.
"It's unfair for teachers to be victimised when they are already victims," he said. "If the situation goes on unabated, it will be chaotic. No one wants to serve for free. That is the reason why we are encouraging dialogue."
Teachers' incentives have been a controversial matter and several meetings have been held to determine whether or not to abolish them.
Source - Heraldonline
