Latest News Editor's Choice


News / Press Release

Chinamonics tax imposition evil

by Jacob Mafume, PDP Spokesperson
29 Mar 2017 at 16:10hrs | Views
The People's Democratic Party is irked by Patrick Chinamasa's unrepentant promulgation of anti-people policies. In another shocking but typical Chinamasa style, he has decided to impose additional taxes on the informal sector.

Heavy taxes have been imposed on commuter operators and hairdressers despite the fact the informal sector already struggles owing to the hostile economic environment. Chinamasa's decision is an assault on the defenceless, poor working people of Zimbabwe.

The irony of it is that the Minister is doing the opposite of what basic economics demand him to do in a recession that ZANUPF dragged us into.

The general factor is that in a recession there is no aggregate demand because the people do not have spending power. In that regard companies close en-masse because their costs remain constant because of the obligation to pay bills including remuneration of staff. Job losses also follow reducing the number of people with disposable income. The chain continues until it affects Chinamasa's revenue collection tactics that are based on consumption tax in the form of VAT.

Companies are already burdened due to the environment created by ZANUPF incompetence. Shockingly Chinamasa fails to comprehend that in a situation like this you cut the tax not the opposite.

Recently we have seen him introduce so many stringent, barbaric laws including an import ban, a
reduction of the duty free rebate and recently tax on cereals and beef.

Our position is that Chinamasa has to encourage spending instead of the opposite which will just save to punish the poor working people of our country.

Imposing new taxes will only increase shelf prices thereby further deterring consumers from spending. In short the peasantry being displayed by Chinamasa is working well to dig this economy further down the abyss.

Instead of punishing the poor focus must be on real reforms which include trimming the ever ballooning travel budget with the head of the snake the chief culprit.

The government must also do away with ghost workers on the pay roll to create a bit of some fiscal leg room.

ZANUPF must also trim the executive; the current size of the cabinet is a huge burden on the nation fiscas considering that the Ministers drive the latest expensive off-road vehicles on top of official Mercedes vehicles on top of other benefits.

Real reforms are what can sustain an economy; the short cuts that Chinamasa is trying to take will not do the trick.

We maintain that Chinamasa needs to revise the 2017 budget downwards as we stated in our State of the Economy Address of December 2016.The last time he revised revenue targets downwards but revised expenditure upwards in an insane move aimed at defying the basic rules of economics as expected it is proving unsuccessful.

At the present moment the budget deficit is at 42, 3% which probably makes Zimbabwe the only case in the region and even beyond.

Finally focus must be on dealing with the fundamentals of providing supply side solutions through supporting the industries to reopen, encouragement of domestic investment through incentives and dealing with the underlying factors like energy and power.


express-links-money-tranasfers
Join Bulawayo24 Online Community
Source - Jacob Mafume, PDP Spokesperson

Subscribe

Email: