Committee to block passage of the Income Tax Bill

The parliamentary portfolio Committee on Budget, Finance and Investment is this week expected to block debate and subsequent passage of the Income Tax Bill being steered by Finance

Minister Tendai Biti after several stakeholders expressed reservations on the proposed law.

The Committee, which has been on a whirlwind tour of various cities to gather people's views was inundated with complaints from people who said the Bill could not be passed in its current form because it had an adverse effect on both individuals and corporate.

Committee chairperson and Goromonzi North MP, Cde Paddy Zhanda (Zanu-PF) told people here that it was not prudent for Parliament to allow the passage of the Bill, hence they would seek that it be deferred.

Cde Zhanda said this after the conclusion of public hearings in Bulawayo at the weekend.

Minister Biti was due to make a Second Reading of the Bill this week.

"This Bill is not a simple Bill that should be bulldozed into Parliament because it affects individuals and corporates.

"When we meet with the minister on Monday (today) we will ask him to defer the Bill so that there is enough time for all stakeholders to express their views not just to take it from Sierra Leonne as what we have heard," said Cde Zhanda.

Some tax experts had said the Bill seemed to have just been regurgitated from Sierra Leone legal statutes without considering how it would impact on the Zimbabwean situation which is at variance with the West African country.

"I do not think it will be fair to allow this Bill to pass before consultation have been exhausted.

"There is still enough time to consult since the Bill comes into effect next year.

"Let's allow time for people to participate by giving their views," said Cde Zhanda.

Dr Eric Bloch had earlier criticised the Bill saying it had an adverse effect on trading on the Zimbabwe Stock Exchange.

He said the Bill would discourage investment at the bourse.

He said virtually all what one gets in earnings is subjected to tax in terms of the Bill, something he said was not tenable.

"It will worsen poverty and not deter it.

"Even if one gets a Christmas present or gift, it is subject to tax in terms of this Bill," he said.

He said subjecting people in the Diaspora to income tax might lead to treble taxation.

Tax practitioner, Mr Peter Mugodi said there was a need for tax education to empower people on the regulations.

"The average business person is not tax literate and he can not afford a tax consultant.

"There is need for tax education when we look at the penalties provided by this Bill," he said.

Mr Mugodi called for a tax amnesty for a period prior to the multi-currency system as most businesses were no longer complying with regulations owing to the harsh economic environment prevailing at that time.