Latest News Editor's Choice


Opinion / Letters

Our natural resources are our taxes

09 Dec 2023 at 15:14hrs | Views
Dear Finance Minister, Prof Mthuli Ncube

Surely, why the 1% property tax, let us tax our minerals.  Zimbabwe is considered rich in minerals because it possesses significant quantities of valuable natural resources, such as metals, ores, fossil fuels, gemstones, or other extractable resources. The factors that determines whether a country is rich in minerals include:

1. Geological Potential: The presence of mineral-rich geological formations, such as mineral deposits, ore bodies, or hydrocarbon reservoirs, indicates the potential for mineral wealth. Countries with diverse and extensive geological formations have a higher likelihood of containing valuable minerals.

2. Quantity and Quality: The abundance and quality of mineral resources within a country's borders are crucial factors. Large reserves or high-grade deposits of minerals increase the economic value and potential profitability of extraction.

3. Diversity of Minerals: A country that possesses a wide range of minerals benefits from diversification, as different minerals have varying market demand, prices, and applications. Countries rich in multiple types of minerals have the potential for a more resilient and sustainable mining industry.

4. Economic Viability: The economic viability of mining operations depends on various factors, including infrastructure, logistics, accessibility, and the cost of extraction. Countries with favorable conditions for mining, such as good transportation networks, reliable power supply, and supportive regulatory frameworks, are more likely to attract investment and maximize the potential benefits of their mineral resources.

5. Global Market Demand: The demand for minerals in global markets plays a significant role in determining a country's mineral wealth. High demand and competitive prices for specific minerals increase the economic value of a country's mineral resources.
 
With these factors in place, then why is the Zimbabwe government continue to impose taxes on the people, with the latest being property tax. On November 30, 2023, Zimbabwe's Finance minister Mthuli Ncube introduced a proposal for property tax on homes. He suggested that individuals owning houses valued at US$100 000 or more will be required to pay 1% of the market value of their houses as property tax. Zimbabwe already has a whole lot of taxes that include
 
Income Tax
Pay As You Earn (PAYE)
Value Added Tax
Withholding taxes
Excise duty
Special excise duty
Capital gains tax
Carbon tax
Road tolls
Surtax
Stamp duty
Customs duty
Presumptive taxes
IMMT Tax
Electronic transaction Tax
Mobile Money transaction Tax
etc
 
Zimbabwe should be a very wealthy country after 43 years of independence. We should have the best health service and a social service second to none. Zimbabwe should have effective governance, sustainable extraction practices, transparent resource management, and sound economic policies. These are crucial for converting mineral wealth into long-term economic development, social welfare, and environmental sustainability.
Zimbabwe's mining sector is highly diversified, with close to 40 different minerals. There should be a way the nation can benefit without heavy taxation being imposed on the poor majority who are battling to survive.

Pakaipa

Engineer Jacob Kudzayi Mutisi



Source - Engineer Jacob Kudzayi Mutisi
All articles and letters published on Bulawayo24 have been independently written by members of Bulawayo24's community. The views of users published on Bulawayo24 are therefore their own and do not necessarily represent the views of Bulawayo24. Bulawayo24 editors also reserve the right to edit or delete any and all comments received.