OPINION: How The Government Will React To The High Court Judgement Declaring 2% Tax Illegal – Magaisa

Renowned Constitutional Law expert Alex Magaisa has tweeted what he thinks the government will do in regards to a  High Court judgement declaring the controversial 2% tax illegal. Today, Justice Zhou ruled that the 2% tax imposed by Mthuli Ncube last year, is illegal.  

Writing on his Twitter handle, Magaisa said the government will appeal which will suspend the sentence and the appeal could take months while the tax is still being deducted from every transaction. Said Magaisa:

1. The High Court judgment declaring the 2% tax illegal is welcome but delayed justice. It will also be frustrated justice because the government will appeal the effect of which is to suspend the judgment. The matter will join the Supreme Court queue, probably for months.

2. Meanwhile, government will continue to rack in cash from the illegal tax. It means the Minister of Finance’s “surplus” is based on an illegality. The 2019 national budget was based on illegally acquired revenues. It will also affect preparations for the 2020 budget.

3. But the BIG issue of the moment will not be sidelined by this merry-go-round over the 2% tax

There has been no response from treasury, RBZ or the government on the 2% illegal ruling so far.

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2 comments on “OPINION: How The Government Will React To The High Court Judgement Declaring 2% Tax Illegal – Magaisa

  1. The government can regularize the tax using the legislature, which has already enacted the tax via finance bill, apart from a court appeal, in my learned view.

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