'We Have Taken Money From The People To Give It Back to The People' - Mthuli Ncube Defends 2% Tax

Finance Minister Mthuli Ncube said that the majority of the people are happy with the 2 cents tax. He said that the money will be given back to the people through the funding of education and health as well as road rehabilitation.

While responding to questions in the House of Assembly on Wednesday during a debate on the 2019 national budget, Ncube had this to say

The 2% tax is not about Zimbabweans being punished, and it is dishonest to say that they do not want it. In fact, they have embraced it, and ordinarily what Zimbabweans have only complained about is that the prices of fertiliser and goods are high.

We have ring-fenced the 2% to make sure that the people of Zimbabwe benefit, such that out of the 2%, we will extract the $310 million to finance devolution. This means that we have taken money from the people to give it back to the people. The change will be used to fund education and health and closing potholes, as well as purchasing ambulances and buying school desks, and so people will feel the impact.

The Finance Minister also insisted that the United States dollar to RTGS and bond exchange rate remains at 1:1. He said

The government said the official rate of US$ to RTGS and bond is 1:1, and this is official, but we are aware of the various premiums applied by people out there in terms of the rate.

To be clear, this other rate is what we call in economics; premiums. We have the fixed exchange rate regime and there is the premium which people use out there.

Related:

• 2 Cents Tax To Fund Rural And Urban Councils’ Water, Sewer Rehabilitation – Ministry Of Finance Secretary

• 2% Tax Already Producing Results- Mnangagwa

More: Newsday