HomeNewsChinamasa under fire over Mid-Term Policy Review

Chinamasa under fire over Mid-Term Policy Review

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ECONOMISTS and opposition politicians have attacked Finance minister Patrick Chinamasa’s Mid-Term Fiscal Review Policy Statement presented to Parliament last week, describing it as “technically unsound and cruel” and bereft of fresh stimulus to jumpstart the economy.

SENIOR REPORTER

Debating the policy statement during a public meeting organised by Crisis Coalition in Zimbabwe in Harare on Tuesday, former Finance minister and MDC Renewal interim secretary-general Tendai Biti said Chinamasa’s proposed new revenue–generating measures did not address the real causes of the current economic meltdown.

“The policy statement is not technically sound as it does not address the issues of how the country can move out of the deflation, a recession that is sliding into the cyclical depression,” Biti said.

“The Treasury did not look into the pertinent issues such as the political issues and bring clarity on conflicting laws especially on indigenisation that is caring foreign direct investment and overseas development assistance.”

MDC-T acting secretary-general Tapiwa Mashakada said the policy measurers had condemned the majority of the population to abject poverty due to overtaxation.

“A Mid-term Fiscal Policy review should have four objectives, namely to stimulate the economy currently in deflation, raise revenue, restore macroeconomic stability and address the pressing issues of the day like electricity and food shortages, but this statement failed on that score,” Mashakada said.

Economist Godfrey Kanyenze said: “The government should plug the revenue leakages and corruption as the first measures in controlling the economic hemorrhage.

“Increasing taxes for the poor has a limit or people will start evading taxation all together.”

However, Zanu PF politburo member Patrick Zhuwao defended it, saying it would go a long way in reviving the economy as it sought to set aside a fund for the agriculture sector.

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