By Staff Writer
Borrowing difficulties have forced the government to implement more taxes to generate revenue to maintain and develop new infrastructure, the Minister of Finance and Investment Promotion Mthuli Ncube has said.
Ncube who recently presented a ZWL$58.2 trillion budget said the new taxes will go a long way in assisting the government to develop new infrastructure for the benefit of citizens.
In the 2024 budget presentation, Ncube increased passport fees by 67% while introducing a 1% wealth tax which will be levied on residential properties with a minimum value of $100,000.
The budget will see toll fees increase and a fuel levy will also be introduced which will see motorists paying an additional three and five cents per litre of diesel and petrol respectively.
“Government is constrained in terms of access to borrowing in terms of credit buying, so the only way to continue to maintain the infrastructure, develop new infrastructure is to be able to levy certain taxes here and there,” said Ncube.
“I don’t think it’s excessive. Frankly, I feel that it’s fair and it will go a long way in assisting our government to develop new infrastructure for the benefit of citizens.
“These roads are not for the benefit of the government, it’s for the benefit of citizens, so it is citizens investing in their infrastructure and we think this is good.”
Despite heavy taxation, the Minister said the budget sought to look after the welfare of the poor and the low-income groups.
“We have raised the tax threshold levels. For example, we also seek to impose a re-distributive tax from those who are wealthy in the form of a wealth tax so that we can support infrastructure for everybody to benefit.
“The budget to support social protection is quite sizable if you look at for example just supporting the BEAM program, the elderly those with a disability, looking at the budget from the social sector, mainly health and education. I think that it is quite a sizable budget.”
Ncube said the budget is balanced and contains the right levels of incentives.
“Let’s not forget that the Pfumvudza/Intwasa program is actually a productive social protection program with a strong investment element and again there is a health allocation for that.
“There is something for everyone in this budget, it’s balanced, it has got the right levels of incentives, those who are investing and also the right levels of tax relief means, as well as revenue-raising measures to keep things on an even cue and to make sure that everyone is catered for,” he added.
