News / National
Tsvangirayi slams Zimra presumptive taxes
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The Zimbabwe Revenue Authority (ZIMRA)'s newly introduced presumptive taxes will heap further hardship on vulnerable citizens already grappling with stagnant wages and soaring living costs, Norton legislator Richard Tsvangirayi has warned.
On Monday, ZIMRA announced new presumptive vehicle tax rates, with some charges set as high as US$500 per month. Commuter omnibuses are now expected to pay between US$50 and US$100 depending on their passenger capacity, while taxi cabs carrying up to seven passengers will be charged US$35. Driving schools will also shoulder heavier costs, with Class 4 vehicles attracting US$50 per month and Class 1 and 2 vehicles US$100. Goods vehicles have not been spared either, with those weighing between 10 and 20 tonnes now taxed at US$200, and those exceeding 20 tonnes taxed at US$500. Smaller trucks with trailers exceeding 15 tonnes but less than 20 tonnes will also be levied US$500.
Tsvangirayi said these new charges will inevitably drive up the cost of goods and services, worsening the plight of ordinary Zimbabweans. "The new presumptive taxes introduced by ZIMRA are unfair and will have a direct negative impact on the most vulnerable in our society. Salaries have remained stagnant, yet taxes continue to rise, pushing the cost of goods and services beyond the reach of many. This will only deepen poverty, running contrary to the SDGs, particularly the goal of eradicating poverty, as well as the objectives of NDS1, which seeks to reduce the cost of doing business," he said.
While ZIMRA argues that the new system is meant to encourage businesses to formalise their operations and expand the government's revenue base, the Norton legislator urged authorities to adopt a more humane approach. He argued that incentive-based compliance mechanisms would yield better results than punitive measures that threaten livelihoods.
"While the intention may be to encourage companies to register, formalise their operations, and increase government revenue, alternative strategies must be pursued," said Tsvangirayi. "These strategies should focus on incentivising compliance rather than relying on punitive measures that exacerbate the economic hardships already faced by ordinary citizens. In this regard, ZIMRA must urgently revise these figures downwards to ensure fairness and protect livelihoods."
The new tax regime comes at a time when transport operators, informal traders, and small businesses are already battling high operating costs, fuel hikes, and weakened consumer demand, raising fears that the measures could further suffocate the struggling economy.
On Monday, ZIMRA announced new presumptive vehicle tax rates, with some charges set as high as US$500 per month. Commuter omnibuses are now expected to pay between US$50 and US$100 depending on their passenger capacity, while taxi cabs carrying up to seven passengers will be charged US$35. Driving schools will also shoulder heavier costs, with Class 4 vehicles attracting US$50 per month and Class 1 and 2 vehicles US$100. Goods vehicles have not been spared either, with those weighing between 10 and 20 tonnes now taxed at US$200, and those exceeding 20 tonnes taxed at US$500. Smaller trucks with trailers exceeding 15 tonnes but less than 20 tonnes will also be levied US$500.
Tsvangirayi said these new charges will inevitably drive up the cost of goods and services, worsening the plight of ordinary Zimbabweans. "The new presumptive taxes introduced by ZIMRA are unfair and will have a direct negative impact on the most vulnerable in our society. Salaries have remained stagnant, yet taxes continue to rise, pushing the cost of goods and services beyond the reach of many. This will only deepen poverty, running contrary to the SDGs, particularly the goal of eradicating poverty, as well as the objectives of NDS1, which seeks to reduce the cost of doing business," he said.
While ZIMRA argues that the new system is meant to encourage businesses to formalise their operations and expand the government's revenue base, the Norton legislator urged authorities to adopt a more humane approach. He argued that incentive-based compliance mechanisms would yield better results than punitive measures that threaten livelihoods.
"While the intention may be to encourage companies to register, formalise their operations, and increase government revenue, alternative strategies must be pursued," said Tsvangirayi. "These strategies should focus on incentivising compliance rather than relying on punitive measures that exacerbate the economic hardships already faced by ordinary citizens. In this regard, ZIMRA must urgently revise these figures downwards to ensure fairness and protect livelihoods."
The new tax regime comes at a time when transport operators, informal traders, and small businesses are already battling high operating costs, fuel hikes, and weakened consumer demand, raising fears that the measures could further suffocate the struggling economy.
Source - NewZimbabwe
