Maravi

(HERALD) Taxing Diasporans not such a good idea

Taxing Diasporans not such a good idea

EDITOR — Remarks by Finance Minister Tendai Biti that he may be contemplating to tax the income of the Diaspora to augment the revenues for the fiscus is very strange indeed.

Those who work outside the country are taxed by the host countries and contribute to social security payments for their health and education. What they are left with may not be enough to meet their expenses for accommodation, food and clothing.

At least they are able to remember those they left behind by periodically sending money to meet their upkeep.

Having been in the USA a few months ago, I saw how Zimbabweans work hard to earn a living. It is not easy to earn the US dollar outside Zimbabwe.

Even here in Zimbabwe we have realised that it may be easy to print money, but using foreign currency is a difficult business.

What most Zimbabweans in the Diaspora are advocating, besides being allowed to cast their votes in a general election, is a way to help invest in the country of their birth the little money that they have saved.

The overreliance on building houses does not meet the requirements of developing a country.

If we want to stop the brain drain and the system of sending our children to universities outside the country, we need to create an enabling environment in which they can get jobs back home.

The Diaspora wants to buy Government Investment Bonds, which can guarantee a return of their investment.

It would be up to the Government to manage the money raised by investing in areas that would help the country achieve a sustainable growth rate.

In the latest Africa Report magazine, several African countries are raising much needed capital by encouraging those in the Diaspora to buy Government bonds, which yield at least 2 to 3 percent interest every six months.

Zimbabwe should do the same.

Those Zimbabweans I spoke to in the USA would welcome such a development.

All they want is that the interest payments be remitted into their accounts either in local banks or sent to them.

The problem that Zimbabwe faces may not be lack of credit but the ability to pay back whatever is borrowed.

The Ministry of Finance must address these issues if Treasury wants revenues through taxes to flow into their coffers to meet recurrent expenditure and pay living wages to the civil service and the most needed professional people.

Albert Nhamoyebonde.
Harare.

Labels: NEOLIBERALISM, TAXATION, TENDAI BITI

posted by MrK @ 8:51 AM