Fight Inequality Alliance Zimbabwe leads tax challenge against Mthuli Ncube
By Aleck Murimigwa
Social and economic justice grouping, the Fight Inequality Alliance Zimbabwe has challenged the government’s “rigged” taxation system they claimed is “in favour of the elites at the expense of poor citizens.”
The Fight Inequality Alliance-Zimbabwe is made up of other pro-poor organisations like Vendors Initiative for Social and Economic Transformation (VISET), Transparency International Zimbabwe (TIZ), Poverty Reduction Trust Forum, Women and Law in Southern Africa, (WLSA) Combined Harare Residents Association (CHRA) among others.
Addressing the press recently, the Alliance godfather and spokesperson Janet Zhou challenged the finance minister Mthuli Ncube to abolish multiple taxes levied on the poor Zimbabweans, instead tax the rich and the elite.
“The 2% tax doubles and triple taxes the poor in online transactions, yet the elites are insulated by their fat pockets,” Zhou said.
“We stand opposed to the increase of Withholding Tax from 10% to 30% assented in the Finance Act No 7 of 2021 as it further strains the already repressed incomes of the poor.
“Tax injustices have become hard-wired into the present economic system. Tax administration is rigged in favour of the elites at the expense of poor citizens. It has since departed from being progressive to regressive.
“Resultantly, the burden of taxation weighs heavily on the shoulders of the poor Zimbabweans in violation of Section 298 (1) (b) (i) of the Constitution of Zimbabwe which stipulates that the burden of taxation must be shared fairly.”
Zhou said the ordinary citizens are burdened by taxation which does not match social service delivery and infrastructure while some multinational companies are awarded tax holidays.
“Unfortunately, citizens are overtaxed yet public service delivery and investment in social services infrastructure is on the decline which is an act of tax injustice.
“Some multinational corporations are being given arbitrary, unreasonable, unjustified, and unsustainable tax incentives. Examples include Huawei Technologies income tax exemption and the 5-year tax exemption to Great Dyke Investments (GDI).
“The same government is taxing the ordinary citizen to the last cent.”
In his 2022 national budget, Ncube introduced a range of taxes that included US$50 mobile phone tax in his ZW$927-billion-dollar budget. Parliamentarians from both houses opposed in vail the proposal saying it is against the e-eLearning revolution with President Emmerson Mnangagwa signing the budget early this month.
