THE Zimbabwe Congress of Trade Unions (ZCTU) has urged parliamentarians to reject the 2024 national budget, which it says sends the majority of people to the “gallows”.
In a solidarity message presented at the Employers Confederation of Zimbabwe (Emcoz) annual congress in Kariba on Tuesday, ZCTU president Florence Taruvinga said the budget was anti-poor.
“In essence, the budget is hinged on brutal taxation of the people,” she said in a speech read on her behalf by Kudakwashe Munengiwa, the union’s deputy secretary general.
“Our view is that the tax regime in the country is already onerous and burdensome, and so the reviews will result in a drastic increase in the cost of accessing public services, transport and logistics, the price of fuel, and the overall cost of doing business in the country.
“The net effect will be to reduce disposable incomes while eroding the country’s overall competitiveness. This could also weaken the employment creation capacity of businesses. High taxation is also associated with high informality and low confidence.
“While the budget was touted as a pro-poor budget, the above tax measures make the budget anti-poor.”
In his 2024 budget, Finance minister Mthuli Ncube introduced a number of taxes and levies. For instance, he reviewed the strategic reserve levy by US$0,03 and US$0,05 per litre of diesel and petrol, respectively. He also proposed to review upward toll fees from US$2 for light motor vehicles to US$4 on other roads and US$5 on premium roads.
Passport fees are to be reviewed upwards from US$120 for the ordinary passport to US$200.
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Ncube also proposed to introduce a levy of US$0,02 per gram of sugar contained in beverages, excluding water. He also came up with a wealth tax levied at a rate of 1% of market values of residential properties with a minimum value of US$100 000.
“These proposals are a clear indication that the powers in government are detached from the lived realities of the majority of citizens,” Taruvinga said.
“A sensitive government would not punish its own struggling citizens by taxing them to the marrow. The ZCTU, therefore, urges parliamentarians to reject the tragic bill that is sending the majority to the gallows and for the government to revise it to humane standards.”
She proposed that the government should adopt a holistic approach to development, integrating economic and social imperatives.
The congress is running under the theme: Adapting to a changing landscape—towards sustainable economic and business growth.
It ends on Wednesday.
