02 December 2021
Prosperity Sikhosana
During the presentation of the 2022 National Budget, Minister of Finance and Economic Development Prof. Mthuli Ncube proposed a Cellphone tax which has caused commotion amongst citizens in Zimbabwe.
Ncube proposed a US$50 cellphone tax which is supposed to be paid before any cellphone gadget can be connected to any network in the country.
The divergent views by the public emanet from the fact that some cell phone gadgets cost less than the proposed tax.
“Mr Speaker Sir, in order to curb tax evasion, I propose to introduce a levy of US$50 which will be collected prior to registration of new cellular handsets by Mobile Network Providers.”
Evidently, this has been disputed by many.
How the US$50 cellphone levy is supposed to assist in tax evasion boggles the mind.
There are some cellphone gadgets that cost as low as US$25 depending on the type, thus, this raises question as to how one should pay an amount which is more than the purchase price of the gadget as tax.
Agreeing with the public, legislators of Zimbabwe seem to have dismissed the bill labelling it a disaster.
Senator Chief Fortune Charumbira was noted saying,
“The Ministry of Finance must not determine everything, we should meet regularly to review the budget and re-strategise everything.”
While independent Norton legislator, Temba Mliswa encouraged MPs not to pass the budget as it was not realistic.
In light of this, Zimbabweans agreed with the statement claiming the budget is not practical.
Similarly, Gift Mugano an Economist, told members of Parliament that inflation would have tremendously skyrocketed by 2022.
Mugano expressed the fact that the Finance Minister is failing to read the economy.
He notes that if the year budget is ZWL$579 billion, then yearly expenditure outplay would be more than 60% which could lead to a budget deficit running into more than a trillion next year.
Mugano further noted that the inconsistencies in the allocation of money towards macroeconomic stability is a cause for concern as the budget must provide 50% of the total foreign currency, which is US$750 million from the anticipated US$1.5 billion towards the operation of the auction system.
He further explained that some programs, for example Pfumvudza does not need any allocation from the budget stating that the budget focus should be on development, construction of industries.
He continued to say the provision of paying civil servants bonuses in US dollars was not corresponding with the local currency budget.
The budget, since its announcement has been receiving controversial views from the public.
One Mr. Ndlovu in a group discussion on WhatsApp stated that the budget is not considering the general public that cannot afford to even buy bread on a daily basis.
He questions how the poor citizens will afford to pay a cellphone tax of US$50.
Zim GBC News