Thursday , February 9 2023

Mnangagva is reviewing Ncube's 2 percent tax – Nehanda Radio


Fungi Quaramba

President Emmerson Mnangagwa says he will soon re-consider the controversial double-digit finance ministerial finance minister Mthuli Ncube's dollar transaction, triggering widespread panic in the country when it was introduced last month.

President Emmerson Mnangagwa with Zan PF spokesman Simon Khaia Moio at the State House
President Emmerson Mnangagwa with Zan PF spokesman Simon Khaia Moio at the State House

This comes after Daili Nevs posted exactly when Ncube announced his taxation that he had no approval from Menangagwa.

As a matter of fact, Ncube was already forced to eat a humble pie after he was forced to speed up the unpopular tax shortly after he announced it – after a tremendous public pride that saw panic buyers who had stockpiled goods and commodity prices sharply increased .

In his weekly state-of-the-art column, Mnangagva said his government would soon review two cents per dollar.

"The government shouted that the double transaction tax increased the tax burden for both business and consumers.

"When establishing a legal instrument against unexplained wealth and deposits, new taxation measures will be announced which, among other things, have been caused by illicit activities in the financial services sector," he said.

Recently, a civil society group prayed by the High Court in an attempt to declare tax unlawful. However, the case was not considered urgent and would be a normal court list.

Ncube has introduced two cents per dollar tax as part of a set of economic measures aimed at reviving the country's sick economy.

"On the occasion of the presentation of the medium-term monetary policy from 2018, I published an overview of the tax on the indirect transfer of money from the current 5 cents per transaction to 2 cents for each transacted dollar.

"Further details regarding the tax are as follows: 2 cents per dollar will only apply to transactions of $ 10 or more. Transactions below $ 10 will be exempt from this tax.

"There is a $ 10,000 limit for the amount of taxes to be paid, which means that transfers exceeding $ 500,000 will attract a $ 10,000 equivalent tax," he said when he announced his amended measures.

Ncube also said that the new tax will be freed from internal transfers of companies, as well as transfers of earnings, tax payments, payments in connection with foreign currency and transfers of funds by the government.

Yesterday, Zimbabwe University's political science professor Eldred Masunungure said development over the past few weeks suggested that Ncube should "shape" – otherwise, he would risk compulsion to resign to the old guard in Zan PF, which is undoubtedly angry. "

"Mthuli is a technical expert. He has the skills to do the job, but … given the vineyard mine field in which he is, he will hardly run Zanu PF's policy.

"He is a novice in our brand of politics and he has to tighten his policy, but I do not think that will succeed.

"Or he must quickly learn politics or prepare to resign. I'm not surprised that the tax on two percent will now be revised," Masunungure told Daili Nevs.

After publishing the tax, Ncube was forced to hold an urgent meeting with the respective Vice President Constantin Chiveng and the Governor of the Reserve Bank of Zimbabwe (RBZ) John Mangudi – which led to the publication of revised tax measures.

This came after Menangagva apparently instructed the deputy to consider the issue, which created panic among the long-standing Zimbabweans – who flooded the supermarkets to buy everything they could lay hands on, as a result of a break-even parallel market where foreign exchange rates hit the roof.

It is said that Nacube's relationship with Zanan PF's gesture is tough after being attacked for the sake of necessity to announce the tax without consulting the hierarchy of the former liberation movement. Daily news

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