Africa-Press – Zimbabwe. THE Zimbabwe Congress of Trade Unions (ZCTU) has petitioned Parliamentarians to reject the 2024 National Budget delivered by Finance Minister, MthuliNcube which is “highly anti-poor”.
The Treasury boss has been at pains in trying to justify the rationale behind the blueprint after it attracted fire from citizens across the political divide who feel that it is taxing the remaining blood out of them.
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Brief snippets from the blueprint show that Ncube introduced a 1% tax on all properties with a market value of US$100 000 and above, the introduction of a levy of USD 0.02 per gram of sugar contained in beverages, excluding water, taxing the US$300 allowances paid to Civil Servants.
Ncube also increased the 30% surcharge on high-value vehicles with a minimum FOB value of USD 120,000 and moved to introduce a Corporate Social Responsibility levy on selected minerals at a rate of 1% on gross proceeds among other measures.
Irked by the “anti-people” and “capitalistic nature” of the Budget, ZCTU secretary general, Japhet Moyo Monday moved to petition the Speaker of Parliament to urgently reject the proposals made in the blueprint.
“We write to your office to express our deep concern over the 2024 National Budget announced by Ncube, which has strong traits of capitalism with tragic consequences to workers and the ordinary person.
“Hinged on brutal taxation, the budget has failed to rescue the already underpaid workers by pegging PAYE tax-free threshold to a paltry Z$750000-00 from 1 January 2024. A fair tax-free threshold in US$ was more sensitive and welcome to workers than this pittance which would be eroded to nothing before it even effected,” he said.
Moyo pleaded with the Speaker of Parliament to appreciate that the erosion of purchasing power has exacerbated an already difficult situation for the poor and vulnerable, especially the working class who continue to face an increasing cost of living at a time when average salaries have dwindled remarkably, trailing way behind the Poverty Datum Line (PDL).
The labour organ said the average minimum wage in Zimbabwe as of October 2023 was about US$230 as opposed to the World Bank international poverty line which is US$2,15 per day.
In South Africa, the ZCTU said that Quarterly Employment Statistics (QES) as of June 2023 averaged monthly earnings (including bonuses and overtime payments) was R25,994 equivalent to US$1,365.95).
The labour organ accused the government of piling taxes on the ordinary people by increasing fuel tax, introducing the wealth tax, sugar tax, and sharply increasing passport, toll and vehicle registration fees among a cocktail of other ‘blood-sucking measures.
ZCTU said such proposals are a clear indication that the powers in government are detached from the living realities of the majority of citizens.
As a result, the workers’ group said businesses will simply cushion themselves by parcelling the burden to the end user through pegging exorbitant prices which are likely to see the cost of living increasing next year.
“Through you Hon Speaker, we urge parliamentarians to reject the tragic budget that is sending the majority to the gallows and for the government to revise it to humane standards. It is our hope as a union that your office will seriously look into these issues. Also attached to This letter is our analysis of the 2024 budget proposals,” added Moyo in the letter.
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