Taxes raised as desperate government aims to
increase revenue
By Tererai Karimakwenda
17 August 2005
In his Mid-Term Fiscal Policy Review statement on Tuesday finance
Minister Herbert Murerwa increased taxes in a Z$6,6 trillion supplementary
budget in an effort to raise more revenue. These desperate measures
were blamed on drought and its challenges and not any political elements
or bad economic policies.
A special VAT rate of 22,5 percent has now been placed on mobile phone
airtime. Murerwa expects to raise at least Z$20 billion in revenue
from this alone. And from September, a new tax will be levied on commuter
transport operators and small miners. Toll gates will also be introduced
soon.
Murerwa admitted the increases would bite deeper into individual taxpayers’
pockets as businesses are set to pass on the burden to the consumer.
A financial analyst in Harare, who chose not to be identified, said
these measures will not save the economy. He believes the government
is trying to cushion itself against the rising inflation and is looking
for as many avenues as possible. But its own contradicting policies
will not reign in inflation.
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