News / National
PDP condemns government’s threat to close foreign companies
21 Mar 2016 at 13:01hrs | Views
The Tendai Biti led party, People's Democratic Party (PDP), has condemned what it called shocking and reckless announcement by Patrick Zhuwao, the youth, indigenisation and economic empowerment minister, that government will from 1 April close all foreign owned companies that fail to pay empowerment levies.
It said records show that the majority of companies have failed to comply with the Indigenisation and Economic Empowerment Act as it is bad at law and at a time when companies are operating below capacity due to the harsh economic conditions.
"Zhuwao's statement is the height of crass insanity and vindicates the PDP's position that they are no genuine reformers in Zanu PF but only looters and grabbers.
"The indigenisation and empowerment model will only ensure that the already corruptly rich in Zanu PF, get richer and no serious business person will invest in this country while thousands more people will lose their jobs" said Jacob Mafume, the party's National spokesperson in a statement.
He said PDP reiterates its position that the indigenization and empowerment framework does not work in Zimbabwe at a time when over 91% of the working population is out of employment.
"The Zanu PF's poisonous indigenization law will also affect the few remaining big companies such as; Delta, Innscor and Zimplats that are operating below capacity due to high operational costs coupled with serious power cuts.
"Therefore, to add additional taxes on these companies is unsustainable and they will only choose to shutdown than pay the government levies.
"As the PDP, we urge Zhuwao to look at the reality and stop his political grandstanding".
It said records show that the majority of companies have failed to comply with the Indigenisation and Economic Empowerment Act as it is bad at law and at a time when companies are operating below capacity due to the harsh economic conditions.
"Zhuwao's statement is the height of crass insanity and vindicates the PDP's position that they are no genuine reformers in Zanu PF but only looters and grabbers.
"The indigenisation and empowerment model will only ensure that the already corruptly rich in Zanu PF, get richer and no serious business person will invest in this country while thousands more people will lose their jobs" said Jacob Mafume, the party's National spokesperson in a statement.
He said PDP reiterates its position that the indigenization and empowerment framework does not work in Zimbabwe at a time when over 91% of the working population is out of employment.
"The Zanu PF's poisonous indigenization law will also affect the few remaining big companies such as; Delta, Innscor and Zimplats that are operating below capacity due to high operational costs coupled with serious power cuts.
"Therefore, to add additional taxes on these companies is unsustainable and they will only choose to shutdown than pay the government levies.
"As the PDP, we urge Zhuwao to look at the reality and stop his political grandstanding".
Source - Byo24News
