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'Cut salaries by 20%,' Zimra boss urges Govt
22 Feb 2015 at 22:37hrs | Views
Zimra has reportedly called for a cut in salaries across the board and for Government to stop creating too many non-productive entities which are draining the already strained Treasury.
Zimra commissioner general Gershem Pasi has said Government, employers and labour should resuscitate the social contract in order to stop the country sinking "deeper into the hole".
According to The Herald, Pasi said salaries were pegged at artificial levels when the country adopted the multi currency system in 2009 and the national cake cannot sustain such high payouts.
Zimbabwe adopted the multi currency system following a run of hyperinflation which led to the collapse of industry which could not sustain operations as a result of the moribund local dollar.
Pasi said the country will continue to sink deeper into problems if corrective measures are not taken.
"Why not say cut by 20 percent across the board; cut wages, interest rates, everything because it will be a social contract. We will give ourselves room to start the growth process," suggested Pasi.
Zimra commissioner general Gershem Pasi has said Government, employers and labour should resuscitate the social contract in order to stop the country sinking "deeper into the hole".
According to The Herald, Pasi said salaries were pegged at artificial levels when the country adopted the multi currency system in 2009 and the national cake cannot sustain such high payouts.
Zimbabwe adopted the multi currency system following a run of hyperinflation which led to the collapse of industry which could not sustain operations as a result of the moribund local dollar.
Pasi said the country will continue to sink deeper into problems if corrective measures are not taken.
"Why not say cut by 20 percent across the board; cut wages, interest rates, everything because it will be a social contract. We will give ourselves room to start the growth process," suggested Pasi.
Source - Herald
