The new tax-bands announced by the “government” yesterday are nothing, but a fallacy meant to hoodwink workers into believing that efforts are being made to alleviate their problems.

Zimbabwe Congress of Trade Unions (ZCTU) notes with concern that the government continues to ignore pleas by the labour movement that taxations of up to 47.5 percent is a very retrogressive and wipes away the meagre earnings of workers, and that workers earning wages below the Poverty Datum Line (PDL), should not be taxed. The ZCTU estimates that the PDL is well over ZWD$200,000. Surely, increasing the tax-free threshold to ZWD$15,000 is a mockery.

For some years now, the ZCTU has been advocating for the highest taxed person to be taxed at 30 percent. It boarders on sadism that what little workers gain through negotiations is always chewed up by Income Tax (47.5%), VAT (15%) AIDS Levy (3%) and Pension Contribution (8%). Workers continue to negotiate for government to earn more in taxes while they remain poor.
The tax bands that have been announced do not cushion the workers against the effects of runaway inflation. Surprisingly, nothing has been mentioned about businesses and this is cause for concern for the ZCTU. Businesses are taxed at 30 percent while they are in business to make profit and workers labour to try and make ends barely meet.
Workers can no longer afford to negotiate for higher wages just for “government” to take away the bulk of wage gains. This is not acceptable.
Wellington Chibebe

SECRETARY GENERAL
September 25, 2008