Maravi

(HERALD) AAG blasts tax regime

AAG blasts tax regime
By Zvamaida Murwira

The Affirmative Action Group yesterday slammed the country’s tax regime, saying the structures were too high and did not recognise that the economy had embraced a multi-currency system.

AAG president Mr Supa Mandiwanzira, yesterday said Finance Minister Tendai Biti needed to adjust his tax regime to conform to the multi-currency system the country was now in.

Mr Mandiwanzira said this while giving oral evidence before a Parliamentary Portfolio Committee on Industry and Commerce, where the organisation had been invited to give its view about the budget presented by Minister Biti last week.

Buhera North Member of House of Assembly Mr William Mutomba (Zanu-PF), chairs the committee.

"Our duty is still high. If a company imports a Mercedes Benz for its chief executive for say US$100 000, it will have to pay almost the same amount as duty and this means that company will not be able to retain staff as other countries do. Some countries do not charge duty," said Mr Mandiwanzira.

"We need an effort to reduce duty for goods or vehicles that are not available in the country. I am not sure who we are trying to promote."

He slammed the setting up of the Constituency Development Fund by Minister Biti for Members of Parliament, saying it was a vote buying strategy.

Minister Biti allocated US$8 million to be used by the 210 constituencies for developmental projects such as sinking boreholes, repairing clinics and schools.

The local MP would chair the fund and other members of that committee are elected councillors.

"It’s an attempt, in our view, to use public funds to enhance one’s political interest. Those funds must be used to restock rural shops. Why should you use taxpayers’ money to prop another person," he said.

"Our view is that as an MP, you should either have the resources or the connections to bring value to your community and not to rely on taxpayers’ money."

Mr Mandiwanzira said the continued funding of the manufacturing sector would have the effect of continuously propping up big corporates at the expense of genuine areas in need of assistance.

The budget should have focussed on how to assist small to medium enterprises that constitute the general members of the public said Mr Mandiwanzira.

"Unemployment, which is around 90 percent, is not going to be addressed through big corporates because they are now into automation and big machines and that does not require many people," he said.

"There is need for a spirit of entrepreneurship. Employment is for small and medium enterprises. This is where this budget should have focussed."

He bemoaned the exclusion of the AAG in the Business Council of Zimbabwe, which he said was constituted by organisations such as the Zimbabwe National Chamber of Com-merce and the Confederation of Zimbabwe Industries that he described as elitist.

Labels: AAG, SUPA MANDIWANZIRA, TAXATION, TENDAI BITI

posted by MrK @ 5:33 PM