Confederation of Zimbabwe Industries (CZI)’s immediate past president, Mr Busisa Moyo, has urged the government to lower taxes in order to attract foreign direct investment. Moyo said the 45 percent rate in Zimbabwe was too expensive compared to the region. Said Moyo:
Investors do not mind indigenisation but are worried about cost of production. High excise duties repel investment. That is why even companies are choosing to import items they can produce locally.
Zimra is in a catch 22 situation as it has to collect taxes because Government needs to survive. We are stuck with a high fiscal budget while the economy is crumbling. We cannot save because we are in a high tax environment.
High taxation discourages savings. Individuals get into shops with net pay and are charged 15 percent VAT more, which reduces disposable incomes,