Use dollarised taxes to pay civil servants

Government must stop using foreign currency (forex) to finance lifestyles for elites and instead use dollarised taxes to pay civil servants in United States dollars, an official from Zimbabwe's largest opposition party has said.

MDC spokesman Jacob Mafume said Finance minister Mthuli Ncube effectively devalued people's deposits by separating accounts in banks, making a clear demarcation between the Real Time Gross Settlement balances and Foreign Currency Accounts.

"The government has also introduced several taxes in foreign currency including duty on cars and that companies must remit taxes in the currency of sale. Considering most companies are providing services or selling goods in US dollars, it effectively means government has enough leg room to fund the social agenda and pay civil servants in US dollars," Mafume said.

"Government also controls exports, withholding the forex earned while giving exporters some insulting percentage. Mthuli Ncube must do the honourable thing and hear the demands of civil servants and ensure schools function and doctors return to work."