ZwNews Chief Correspondent
The Alliance for the People’s Agenda (APA) president Nkosana Moyo has finally spoken on the Minister of Finance Mthuli Ncube’s statement seemingly to replace the country’s borrowing tendency with taxation; he says the move was wrong-timed.
Moyo says owing to Zimbabwe’s lack of fiscal discipline, the over-taxation will only satiate government’s extravagant spending.
Commenting on the recent tax announced by the country’s finance boss, Moyo says the minister rushed to increase tax without thinking of the economic implications of such a ‘turn,’ amid failure to explain how the money has been used.
His sentiments come at the time Zimbabwe is literally burning, with prices of basic commodities sky-rocketing. Most shops in the country’s major towns are running empty, fuel queues have resurfaced, while on other hand, consumers are in panic mode as impulse buying tendencies set in.
A situation similar to the 2008 era, or worse is being feared.
Though yet to be confirmed, reports from certain quarters are that some shops have resorted to transferring stocks from the shelves to their back area warehouses, as they ponder on the next move.
Moyo says though there were a few positives in the statement, mainly the Minister’s confession of the country’s heavy indebtedness; however, he says this honest exposure is being out-weighted by the grey areas in the omissions of what matters most.
He says what was not said is more important than what was said.
Moyo adds that it is unfortunate that both the minister and his subordinate, Reserve Bank of Zimbabwe governor John Mangudya, chose to let citizens speculate on the merits; if any, of the course of action they took.
Moyo says their actions are not consistent with what is on the ground, as nothing was said on the steps to be taken to stop the haemorrhaging in the economy.
“After the admission of the extent of the country’s indebtedness, the next thing was supposed to have been, the detailed word by word account of where the money has been going,” he says.
Moyo adds that such a transparent stance could have helped citizens understand the nature of the debt they are being called upon to contribute towards.
The APA leader says in Zimbabwe, it is worrying to note that the over-taxation of citizens has created opportunities for more careless spending by government, instead of cutting the costs.
According to Moyo, Zimbabwe is the most uncompetitive economy in the Sub-Saharan region because the government is obsessed with the inclination to milk its citizens dry to water its appetite for spending instead of getting more tax revenue from a growing economy.
Renowned political analyst Dr Pedzisai Ruhanya, agrees, he says the Zimbabwe rulers are arrogant, they loot public funds, mount a huge debt, and ask the suffering taxpayers to foot the bill.