Renowned economic analyst Dr Gift Mugano has urged parliamentarians to reject Finance Minister Mthuli Ncube’s proposed 2024 National Budget saying it is not pro-people.

Mugano says the proposed tax hikes and the move to exclude the informal traders from the mainstream economy will bring more pain to the already impoverished people.

“The decision to exclude traders without VAT certificate is very harsh and insensitive considering that more than 6 million people thrives on trading in the face of 85% formal unemployment and drought of economic opportunities.

“These people, in their individual capacities, don’t have annual sales turnover of US$25000 which is required to secure the VAT certificate,” he says.

Mugano writes:

Parliament must reject the anti-people and anti- industry budget which was presented by Mthuli Ncube yesterday.

The proposed tax hikes and the move to exclude the informal traders from the mainstream economy will bring more pain to the already impoverished people.

The decision to exclude traders without VAT certificate is very harsh and insensitive considering that more than 6 million people thrives on trading in the face of 85% formal unemployment and drought of economic opportunities.

These people, in their individual capacities, don’t have annual sales turnover of US$25000 which is required to secure the VAT certificate.

This measure is expected to impact on the manufacturing sector negatively because the informal sector helps them to push volumes especially in manufacturing industries such as food and beverages (bread, ice cream, drinks, etc).

In the bread sector, for example, the volumes are pushed by vendors and tuckshops (not supermarkets) which are now supposed to be excluded from the bread value chain. This will result in drastic fall in sales which has a net negative effect on production and jobs.

Is @MthuliNcube aware of these dynamics and possibilities?

The following increases in taxes, levies and fees are a thorn in the flesh for an already struggling population:

  • more than 100% increase in toll fees will push up bus fares and transport cost for the commuting public. The rural folks & pensioners will suffer the most as the timing of this policy measure is coinciding with a devastating drought – they will have to bear with these new measures over and above their struggle to put food on the table

  • introduction of levies on beverages with sugar is again insensitive as these are the drinks of the poor and our children.

  • passport and vehicle number plates fees hikes are again schemes put in place to milk the poor.

  • the US$300 will be taxed come January 2024 – so insensitive to the underpaid civil servants who were expected a salary hike.

  • wealth tax reminds of the Rhodesian government which introduced hut tax and @MthuliNcube admires the very same exploitative tax regime and introduce it again in “independent” Zimbabwe.

If Parliament is going to act in the best interest of the public, they must reject this budget and request @MthuliNcube
redo the budget and produce a pro-poor budget.

It is my prayer that @ZANUPF_Official
and @CCCZimbabwe MPs unite on this one and reject this useless budget.

If @ZANUPF_Official use their majority vote to support this useless budget and overpower @CCCZimbabwe by virtue of their numbers they are voting for more poverty for their rural constituencies where they got most of their votes.

In the same way, they are punishing the 6 million people in the informal sector as they will be endorsing their exclusion from the manufacturing sector value chains.