ZIMBABWEANS must brace for a bleak 2025 financial year.
The State wants more of their pound of flesh or to use the common parlance — the State wants to squeeze the working class dry.
Finance, Economic Development and Investment Promotion minister Mthuli Ncube on Thursday tabled the 2025 national budget before Parliament.
That the State is bankrupt was plain to see in the numbers.
The budget deficits and reliance on Treasury Bills was splashed in graphs.
However, Ncube lived true to the proverbial statement: The more things change, the more they remain the same.
He went for the soft targets on his revenue raising measures — the workers.
Ncube squeezed them some more.
- Budget dampens workers’ hopes
- Govt issues $24 billion Covid-19 guarantees
- Letter to my People:They have no answers for Nero’s charisma
- ZMX to enhance farm profitability
Keep Reading
The elite always get away smiling.
Ncube did not show any teeth or bark at the wasteful ministries, departments and agencies.
He did not cut back on foreign travels or limit the size of delegations.
Neither did he speak anything on cutting back on luxury cars as perks for the political elite and top bureaucrats.
The workers and vulnerable were once again exposed to the economic vagaries.
This is putting it mildly. The reality is worse than this.
Ncube decided to pile more taxes on citizens.
The citizens pay their pay as you earn and value-added tax whenever they purchase goods, but that was not enough.
Treasury decided to take the merry out of the people.
It is now a labour of love for many to enjoy fast foods such as burgers, chicken and chips or doughnuts.
These would now be taxed.
Oh boy, I had forgotten that those who smoke or drink have to pay extra for their drinks.
It is called sin tax.
Ncube does not want Zimbabweans to die of obesity.
Ncube said: “Mr Speaker Sir, the consumption of highly processed food has been identified as one of the factors responsible for the prevalence of obesity and associated non-communicable diseases, hence, the need for government to promote responsible consumption of such foods,
“In view of the above, I propose to introduce a fast foods tax on the value of the following food items sold by fast food retail outlets and restaurants at a modest rate of 0,5% on the sales value, with effect from January 1, 2025.”
The government over the months has been thinking of how to get a share of betting prizes.
It has been written a lot of times that Zimbabweans are now betting crazy and every vacant building in urban centres has been turned into betting halls.
Ncube did not miss and now wants a share of the winnings.
The Treasury czar said: “Honourable members would be aware that betting is popular in nature, as indicated by the proliferation of sports betting houses countrywide. Sports betting punters, however, receive income from winnings, which is currently not taxable under personal income tax.
“In order to embrace punters into the tax base, I propose to introduce a 10% withholding tax on gross winnings of sports betting punters, with effect from January 1, 2025.”
Ncube was not yet done.
He is still following the money already taxed and is in your mobile wallet or bank account with other taxes when you want to use your money.
In this regard, the intermediated mobile money tax remains at 2% and those who prefer withdrawing cash have to pay a withdrawal fee of 3%.
And when you leave the shop carrying your goods, you are hit with another tax — plastic bag tax.
This is at a flat 20% of the cost of the plastic bag.
I should hasten to add that the plastic bag tax is good for the environment.
However, supermarkets should be incentivised to procure biodegradable carrier bags for use and not pile more taxes on the people.
Finally, Ncube did not think much about disposable income.
Pay as you earn starts at ZiG2 801 at 20%.
This figure is only equivalent to US$100.
Anyone earning above this figure has to give Ceasar what belongs to Ceasar, kicking and screaming.
It remains shocking that 57% of the budget goes towards salaries and wages.
The remaining 43% has to be redistributed to operational costs, consumables, capital expenditure and debt servicing.
It needs no economist to bluntly say that civil servants will just be paid to report for duty and do nothing.
Ncube did not see all this through his rose-tinted spectacles.
He is optimistic that Zimbabwe’s economy is on the road to recovery.
The minister argued that the budget was premised on the following assumptions.
“The 2025 economic growth projections are underpinned by the following broad assumptions: Normal to above-normal rainfall which is expected to result in increased agricultural production; stable exchange rate and low inflation providing a conducive doing business environment; and tight fiscal and monetary policies,” Ncube said.
It is a public secret that since the 2017 coup, the Executive does not respect the budget.
They spend money as if there is no tomorrow, especially among the top echelons.
They love their Range Rovers, caviars and prawns and they will get them.
What has to be done now?
The only hope is in our parliamentarians to stop this madness.
They can choose to block the budget or redistribute the votes.
However, this is a long shot as what Ncube suggested flew over the heads of most of the honourable men and women in the chambers.
The other options are the organised trade unions to give a political solution by picketing Treasury and clearly spelling the people’s demands.
This brings quick solutions, but it is a highly risky game in a country with trigger happy security agents.
However, as January 1, 2025 inches closer by each passing day, the people’s representatives have to show spine, stand up and stand for what is right in the chambers unless they would be fighting to save their skins and enjoy the off-roaders gifted to them by the Executive.
One can only hope that it all ends well by the time the 2025 budget is passed.
- Paidamoyo Muzulu is a journalist based in Harare. He writes here in his personal capacity.
