Vice-President Joice Mujuru has called on the government to consider a new taxation system that takes into cognisance developments in technology and leads to sustained economic growth.
In a speech read on her behalf by Mines and Mining Development minister Obert Mpofu at the ongoing Zimbabwe International Trade Fair, Mujuru said the country should come up with an effective plan of taping into the $50 billion funds from the African Diaspora that could be used as capital for development projects.
“A major source of revenue for development of the magnitude we are talking about is taxation,” Mujuru said.
“As most companies are in the process of retooling or upgrading their technologies, it is imperative they access technology that minimises costs, are environmentally friendly and produce high-quality products.
“In this regard, it is important fiscal authorities design tax systems that positively influence the overall economic growth patterns, beyond just raising revenue.”
The call by Mujuru comes at a time when Indigenisation and Economic Empowerment minister Saviour Kasukuwere was pushing for the introduction of a levy that will be used to raise funds to finance the ongoing empowerment drive.
The Indigenisation and Economic Empowerment Act says “the minister (of Indigenisation) may, with the approval of the minister responsible for Finance, impose one or more levies on any private or public company and any other business in Zimbabwe specified in the Statutory Instrument.” Mujuru said although the government had always insisted on the economic role the Diaspora community could play, it had remained unyielding on demands such as dual citizenship and the right to vote.
“Another source of private capital for development is Diaspora communities, which already contribute in the form of remittances,” she said. In 2010, remittances in the world were worth $325 billion. “The African Diaspora alone was sitting on $50 billion in savings that could be invested in bonds,” she said.
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“Zimbabwe has a fair number of nationals in the Diaspora. My challenge to our planners is for them to formulate policies and strategies that encourage investments at home by such foreign- based nationals. “We need to ensure that this growing pool of money has as big an impact as possible on our economy.”
