Mohadi reassures business on taxes

VICE President Kembo Mohadi says Government is working to reduce taxes, levies and borrowing costs identified by the private sector as key constraints to business growth, as Zimbabwe seeks to improve the investment climate and accelerate economic development.

Speaking at the Zanu PF Matabeleland South Provincial National People's Conference fundraising luncheon held at the Gwanda Tshitaudze Constituency Centre on Thursday, Mohadi said Government was actively reviewing taxes and levies to ease the cost of doing business.

The event, which raised US$150,000 towards the 23rd Zanu PF National People's Conference scheduled for October 12 to 17 in Chinhoyi, brought together business leaders, government officials and party representatives.

Mohadi, who is Zanu PF's Second Secretary, urged the private sector to participate more actively in the party's structures, arguing that businesses could help shape policies affecting the economy.

"Zanu PF, which is Government as well as the ruling party, was tasked to create a conducive environment for business to thrive and that's why we have come up with a number of initiatives to ensure ease of doing business in Zimbabwe," he said.

He said Government's engagement and re-engagement policy had helped attract investors and that authorities were now addressing concerns raised by businesses over the country's tax regime.

"I have heard concerns raised by the private sector during this engagement over taxes and levies, which are high, thereby affecting business growth," Mohadi said.

"We are seized with this matter and fortnightly the Ministry of Finance, Economic Development and Investment Promotion comes with a list of some taxes and levies that can be scrapped or reduced.

"As we speak, some have been reduced or totally removed."

Mohadi said Government was also reviewing high lending rates, which he said were limiting businesses' access to affordable credit.

He said the Ministry of Finance was using statutory instruments to address the issue.

The Vice President reiterated that the private sector would play a central role in achieving Vision 2030, which seeks to transform Zimbabwe into an upper-middle-income economy.

He encouraged business leaders to engage with the ruling party to influence economic policy.

"I call upon the business community to interest itself in the politics of the day because by doing so you can influence business of the day," he said.

"The party is supreme and what Government does comes from the party. Therefore, you have to use the Zanu PF party platform. If you contribute to the party meaningfully, you can influence decisions, which will also help you as you work."

Mohadi also challenged companies operating in Matabeleland South to strengthen their corporate social responsibility programmes, particularly in maintaining roads damaged by heavy mining traffic.

He expressed concern over environmental degradation linked to mining activities, saying investors should assist in repairing infrastructure affected by their operations.

"We appreciate the development which comes with your investment as we see employment creation and infrastructure development, but there is also need for us to work together. You can't expect Government to rehabilitate these roads or fix other damages that you would have caused during your operations," he said.

Zanu PF Matabeleland South provincial chairman Mangaliso Ndlovu said the fundraising event doubled as a business policy engagement aimed at incorporating private sector views into resolutions for the upcoming national conference.

"Today the party is meeting the business community as we are building momentum to hold the National People's Conference. In the past we have been going with resolutions that capture the views of the party, but we have been leaving out the business community," Ndlovu said.

"We want to develop this year's resolutions with your input. If possible, let's hold these engagements regularly."

Among those who attended the event were Minister of State for Matabeleland South Provincial Affairs and Devolution Albert Nguluvhe, Environment, Climate and Wildlife Minister Evelyn Ndlovu, Deputy Information Minister Omphile Marupi, Deputy ICT Minister Dingumuzi Phuti, political leaders, faith leaders, heads of government departments and members of the business community.