Minister of Energy and Power Development, Joram Gumbo has said that he hopes that the 2 per cent on all money transfers which was announced by Finance Minister Mthuli Ncube will be reconsidered. Gumbo called for his ministerial colleague to review the position as it will have ripple effects on the economy if the price of fuel goes up due to the tax. Speaking to the Daily News, Gumbo said,
There was an announcement from the Ministry of Finance about this, it has not been gazetted. I don’t know whether it has been gazetted or not. I have made my plea with… [Vice President Constantino] Chiwenga that this must be put on hold because it is going to affect a lot of things.
The price of fuel is going to go up and as you are aware, prices are already going up on many commodities and I can assure you, it can be worse by next week because fuel drives everything. It has got an influence on the consideration of prices. We move our commodities or products mostly by road, which means fuel is involved.
….Government has always been getting some money from the sale of fuel, rough levies and duties, but now with this two cents being included, the companies are going to pass that addition to the consumer, and that is the effect, because if they don’t do that, their margin of profit is going to be caught up and it is that margin of profit where they pay for their operational cost. So if you impose this two cents (per dollar) tax, they (petroleum companies) will have to pass it on so it is my hope and belief that this can be reconsidered.
The tax has been described as being illegal by the Law Society of Zimbabwe and by legal watchdog Veritas.
Full Text: Mthuli Ncube’s Tax Must Be Rescinded, It’s Arbitrary, Grossly Unreasonable – Law Society
Mthuli Ncube Is Burdening Overtaxed Citizens Instead Of Cutting Down Wasteful Spending – Nkosana Moyo
Full Text: Finance Minister’s Tax Not Legally Enforceable, Minister Cannot Change Act Of Parlimanet Via Ministerial Statement – Veritas
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More: Daily News
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