Minister of Finance Mthuli Ncube has said that government has allocated $100m from the 2% tax fund to the Cyclone Idai relief efforts. In an opinion piece in state-controlled daily, The Herald, Ncube said that initially, the government had allocated $50 million but soon realised it was not enough and it doubled the figure.
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Cyclone Idai necessitated an urgent and immediate need for resource mobilisation to mitigate against its effects and support those affected. In the past, this would have meant further Government borrowing, leading to extra debt and long term economic ramifications.
But fortunately, funds from the 2 percent tax that were put aside for exactly this eventuality, and became available exactly when they were most needed.
We had initially earmarked $50 million to cover the emergency requirements for mitigating the impact of such a disaster, yet due to the increased performance of the fund, we were able to increase this allocation to a much needed $100million.
These funds are being used to help those who most in need of our help.
The 2 percent tax has been unpopular with Zimbabweans since it’s introduction in October 2018. Ncube said in his opinion article that even though the introduction of the tax was unpopular it was “the right thing to do”.
More: The Herald
Professor Mthuli Ncube is the Minister of Finance and Economic Development. He was the Chief Economist and Vice President of the African Development Bank, financial, economics, investment, and public policy expert, entrepreneur and academic. Professor Ncube divides his time between the private sector in Switzerland... Read More About Mthuli Ncube