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Great Dyke Investments should pay tax: ZIMCODD

by Kudakwashe Vhenge

By Sukuoluhle Ndlovu

Zimbabwe Coalition on Debt and Development (ZIMCODD) is calling upon the government of Zimbabwe to repeal its decision of exempting Great Dyke Investments (GDI) from paying tax for the next five years.

GDI is developing a platinum mining project in Darwendale, Mashonaland West Province. The weekend reader by ZIMCODD noted that there should be justice when it comes to taxation.

“It is a huge contradiction that corporate get tax exemptions whilst the general citizenry is burdened by many taxes and this has resulted in high levels of inequality in the country. We therefore, call upon the government to repeal Statutory Instrument 26 of 2021 exempting GDI (private limited company) to ensure that the state mobilizes more revenue from the mining sector to facilitate socioeconomic development in Zimbabwe. 

“Exempting GDI from paying taxes will not do any justice to the country but will rather worsen the situation. The government of Zimbabwe and other African governments have been called for to stop giving out harmful tax incentives to Multinational companies. 

“For there to be equality, we argue that there is need for just and equitable distribution of the tax burden through the introduction of a wealth tax to ensure that the richest pay a fairer share of the resources required ensuring sustainable and inclusive growth. The new presumptive taxes of the year 2021 must be aimed at capacitating small businesses.

“Government should consider a Basic Income Grant to cushion the poor against the vagaries of poverty, lack and hunger that has been worsened by the Covid -19 national lock-down. Government through taxes it has collected since introducing the 2% tax in 2018 and a new set of presumptive taxes in the 2021 should aim to capacitate small business and informal sector traders who have been hard hit by the current Covid -19 restrictions.

This also comes as the world commemorates the global protest to fight inequality which ends today on the 30th of January 2021.

Taxation and development is fundamental as it will help in meeting the development objectives of the country through tax system, the state can mobilize domestic resources, redistribute wealth and provide essential services and infrastructure, especially in the midst of a devastating pandemic.

Global inequality has increased by 11 percent in the recent past. The United Nations Development Programme (UNDP) indicates that the richest 10 percent have up to 40% of global income whereas the poorest 10% earn only 2-7%.

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