News / Health
Govt makes U-turn on Aids levy
06 Dec 2013 at 03:11hrs | Views
Health and Child Care Minister Dr David Parirenyatwa yesterday dismissed reports that Government plans to scrap the Aids Levy. The Aids Levy was introduced in 1999 following the enactment of the National Aids Council of Zimbabwe Act Chapter 15:14 to compensate for declining donor support.
Health and Child Care Deputy Minister Dr Paul Chimedza told our Masvingo Bureau that Government was already working on modalities to scrap the Aids Levy as a way of easing the tax burden on workers.
After scrapping the Aids Levy, the reports claimed Government would introduce the National Health Fund that it would wholly fund.
In an interview yesterday, Minister Parirenyatwa, however said the Ministry had no such plans at policy level.
"We have not discussed or made any policy on any healthy levy," he said.
"We are still crafting the way forward and we are lobbying Government to give us a separate budget item for cancers. If there is any policy made I will announce."
Minister Parirenyatwa lauded the Aids Levy saying it had made immeasurable contribution in fighting HIV and Aids.
"I think we must make it clear to the nation that the Aids Levy is one of our best practices which is now being copied by other countries in the region," he said.
"We need to correct that article as a Ministry because I think there was a misquotation."
Minister Parirenyatwa said the Aids Levy was generating $35 million annually. He said about 50 percent of the money was being channelled towards the acquisition of Anti Retroviral Drugs, while the remainder was being used for advocacy, awareness, education and administrative purposes. "We are getting $35 million per year from Aids Levy and that has pushed us in getting ARVs," he said.
"As such, we are not removing the Aids Levy."
He said his ministry would lobby Treasury to avail a separate budget for cancers. Meanwhile, Zimbabweans are in the highly taxed bracket in the region as they also pay 3,5 percent of their salaries towards the National Social Security Authority.
They also contribute towards Pay As You Earn which is at least 20 percent of taxable income above $250 (tax-free threshold), VAT at 15 percent, withholding tax for companies in the informal sector at 10 percent and Capital Gains Tax for profits accrued from the sale of immovable property at a rate of flat five percent.
Health and Child Care Deputy Minister Dr Paul Chimedza told our Masvingo Bureau that Government was already working on modalities to scrap the Aids Levy as a way of easing the tax burden on workers.
After scrapping the Aids Levy, the reports claimed Government would introduce the National Health Fund that it would wholly fund.
In an interview yesterday, Minister Parirenyatwa, however said the Ministry had no such plans at policy level.
"We have not discussed or made any policy on any healthy levy," he said.
"We are still crafting the way forward and we are lobbying Government to give us a separate budget item for cancers. If there is any policy made I will announce."
"I think we must make it clear to the nation that the Aids Levy is one of our best practices which is now being copied by other countries in the region," he said.
"We need to correct that article as a Ministry because I think there was a misquotation."
Minister Parirenyatwa said the Aids Levy was generating $35 million annually. He said about 50 percent of the money was being channelled towards the acquisition of Anti Retroviral Drugs, while the remainder was being used for advocacy, awareness, education and administrative purposes. "We are getting $35 million per year from Aids Levy and that has pushed us in getting ARVs," he said.
"As such, we are not removing the Aids Levy."
He said his ministry would lobby Treasury to avail a separate budget for cancers. Meanwhile, Zimbabweans are in the highly taxed bracket in the region as they also pay 3,5 percent of their salaries towards the National Social Security Authority.
They also contribute towards Pay As You Earn which is at least 20 percent of taxable income above $250 (tax-free threshold), VAT at 15 percent, withholding tax for companies in the informal sector at 10 percent and Capital Gains Tax for profits accrued from the sale of immovable property at a rate of flat five percent.
Source - herald
