Income Tax Bill rubbished

THE Bulawayo business community, civil society and economic analysts have described the new Income Tax Bill as the worst law ever.

THE Bulawayo business community, civil society and economic analysts have described the new Income Tax Bill as the worst law ever and in discord with provisions of the new Constitution. By Gamma Mudarikiri, Own Correspondent

Speaking at a public hearing on the Bill organised by the Parliamentary Committee on Budget, Finance and Investment Promotion last Friday, members of the business community said the Bill, if passed into law, will deter investment and affect the economy negatively.

They warned that the proposed law, in its present state, will lead to a contraction of the economy, as its provisions raised the tax band, particularly for foreign companies that had invested in the country.

Renowned economist and analyst Erich Bloch said the Bill was the worst ever the country had seen and if passed into law, will spell disaster for the economy.

“The Income Tax Bill is the worst of the proposed financial legislation that I have seen in the past 56 years of my professional experience,” he said.

“If it is passed into law, it will cause the economy to contract, as no one invests in a country with such tax legislation.”

The business community said despite being consulted when the Bill was crafted, their input had been completely left out.

Civil society groups also called for the Bill to be shelved until further consultations with members of the public were concluded.

They said the proposed legislation was in discord with the provisions of the Constitution and against the interests of the public.

Bulawayo Progressive Residents’ Association secretary for administration, Anglistone Sibanda, said the fact the Bill required domestic workers to pay tax and people in the Diaspora to also pay tax during their visit in the country was punitive.

“The new Tax Bill is a desperate ploy to try and raise money to finance its (government) revenue deficit, which is unfair for the poor ordinary Zimbabwean,” he said.

“The Bill is not to the best of public interest and therefore is not in sync with the new constitution.”

The Parliament’s Budget, Finance and Investment Promotion Committee has been going around the country leading discussions with the business community and ordinary Zimbabweans to get their input on the Bill before it is presented to the House of Assembly for debate next week. However, the Bill has been criticised throughout the country.