THE Zimbabwe National Chamber of Commerce (ZNCC) has commended the Government for including the bulk of its contributions in the 2023 National Budget, which reflects a mutually beneficial relationship between the State and the private sector.
ZNCC, which regards itself as the voice of business, together with several business member groups, made a string of submissions to the Ministry of Finance and Economic Development during the traditional pre-budget consultation process late last year.
In the past, most business lobby groups accused the Government of ignoring their submissions. However, ZNCC its latest update said; “the chamber appreciates the continued consideration of our policy suggestions by the Government of Zimbabwe”.
In November, Finance Minister Professor Mthuli Ncube presented a $4,5 trillion budget under the theme: “Accelerating Economic Transformation” that has been welcomed as people-centred by ordinary Zimbabweans and economic experts.
The economic policy adjustments outlined in the 2023 National Budget come into effect this month and hopes are high that incentives for production through tax relief measures will boost business operations and benefit ordinary citizens.
In its latest newsletter, ZNCC said before the announcement of the fiscal policy measures for 2023, the Chamber had submitted the aspirations from the business community of which some were addressed.
“This is indeed a testimony to the existence of a mutually beneficial relationship between the Government of Zimbabwe and the private sector,” said the Chamber.
On sectoral support measures, ZNCC said revenue enhancing and tax relief measures factored in the 2023 national budget have responded favourably to the plight of the business community.
“These include the review of the intermediate money transfer tax on foreign currency transactions, reinstatement of duty on the importation of basic commodities after the expiry of the duty’s suspension on November 16, and the support extended to industry and tourism, as well as the horticultural sector from the drawdown of the Special Drawing Rights (SDRs),” it said.
In the past captains of industry have been complaining about IMTT, which they said was too high and, therefore, crippling business operations.
The Treasury has said the objective of the IMTT was to bring the previously untaxed informal businesses under the tax bracket but formal businesses are saying this is double taxation.
It added that the transfer of funds to farmers, for the purchase of wheat by private off-takers approved by the Agriculture Management Authority (AMA) for the period 1 September 2022 to 31 March 2023, will be exempted from IMTT is in line with the Chamber’s submissions.
“We commend the Government for heading the call to level the playing field with regards to IMTT on both local and foreign currency,” said ZNCC.
The Chamber also applauded the payment of outstanding taxes using the local currency at the prevailing inter-bank exchange rate saying this will strengthen confidence in the unit.
“The payment of tax in local currency will go a long way in promoting the use of the Zimbabwean dollar,” it said.
“Taxes, levies, and duties should be settled in local currency to lead in showing confidence in our own currency starting from the Government’s side, ministries, departments, and agencies.
“The taxes can be fixed in US dollars, but convertible and payable in local currency at the prevailing interbank rate. This would be more effective when buttressed by the exchange rate and price stabilisation measures.” – The Chronicle
