Mthuli Ncube bows down to pressure, dispatches Parly to justify 2024 Budget

By Staff Writer

 FINANCE Minister Mthuli Ncube has tabled plans to dispatch Parliamentary Portfolio Committees to convene post 2024 National Budget review meetings on the back of brutal backlash from citizens across the political divide.

The 2024 National Budget Blueprint delivered by Ncube last month proposed a raft of taxation measures in what critics see as a ploy by a government willing to take out more from a citizenry they are offering less.

In the budget blueprint, the Treasury boss widened the fiscal space to the extent of going after the US$300 allowances paid to Civil Servants after subjecting them to pensionable emoluments across the board, effective January 2024.

Despite ravaging inflation, Ncube would not let go of the Income Tax revenue category after setting a tax-free threshold of just ZWL$750 000 per month which is just close to around US$150 on the official market and slightly below US$100 on the parallel market.

He also reviewed the tax-exempt threshold on withholding tax on agricultural commodities that include soya beans, sunflower, groundnuts and cotton seed from US$1 000 per annum to US$5 000 or local currency equivalent.

Ncube also increased tax on high-value vehicles from the current 30% up to 50% for vehicles ranging between US$300 000 and US$700 000.

A 1% tax was imposed on all properties with a market value of US$100 000 and above among other tax measures.

The budget immediately attracted backlash, unifying both ruling party Zanu-PF activists and those from the opposition circles who felt Ncube’s blood sucking determination to suck the blood out of citizens.

Viral audio clips imploring the firing of Ncube from the Treasury also took it to social media denouncing Ncube’s mismanagement of the Treasury.

But in a last ditch bid to convince the masses to accept the blueprint, Ncube revealed that Parliamentary Portfolio Committees will be dispatched this week on Public Relations offensive.

“Parliamentary Portfolio committees will start post budget meetings tomorrow. The meetings are convened to scrutinize the budget and ensure its alignment with the needs of the people and the country’s development goals,” he said.

Ncube said these committees play a crucial role in promoting transparency, accountability and effective resource allocation.

He also defended the 2024 budget measures saying they seek to bolster domestic resource mobilization, which is necessary for financing economic development going forward for Zimbabwe to achieve 2030.

“The budget also seeks to support various social groups , especially the poor.For example, we have a sizeable budget that is going towards the Pfumvudza/Intwasa programme which is a productive social protection programme.

The taxes he said , are also meant to support expenditure towards health and education sectors.

“These are critical sectors  sectors  to support within our economy.We also want to support various social protection programmes. All of this requires resources and they are pro-poor interventions,” he said.

He said the Wealth Tax outlined in the budget seeks to raise funding for development of infrastructure in urban centres , particularly water , sanitation and roads.

“The Wealth tax proposal seeks to impose a one percent tax on residential properties valued above US$100 000.The tax is expected to apply to the market value of residential properties excluding any mortgages or other encumbrances,” said Ncube.

Minister Ncube proposed that the tax be payable monthly quarterly or annually at the taxpayer’s discretion.

Let me start with the 1% wealth tax .This tax , apart from trying to seek some form of  redistribution of wealth , given that we have such an inequality , will also raise resources that will go towards developing specific urban infrastructure such as the sewer systems in our urban areas.

He said proposals will be subject to rigorous debate in parliament.