Finance Minister Mthuli Ncube has proposed a raft of measures to strengthen Zimbabwe’s new currency – the Zimbabwe Gold (ZiG) – amid concerns of economic stagnation, corruption and high government expenditure.
Presenting his 2024 Mid-Term Budget and Economic Review Policy statement in Harare today, which resulted in a harsh exchange of words between the opposition and ruling Zanu PF lawmakers in parliament, Ncube proposed the introduction of legislation to boost the use and circulation of the ZiG currency.
Ncube proposed that some taxes should be paid in local currency and government services are expected to be pegged in the ZiG.
He also proposed the introduction of stringent import taxes on transit fuel and scrapping of value added tax on meat and poultry products.
Electronic cigarettes are now expected to attract US$0.5 milliliter customs duty.
In an effort to further strengthen the stability and performance of the ZiG and economy, Ncube also proposed a review of presumptive tax, corporate tax, introduction of legislation to curb money laundering and using the willing-seller-willing-buyer strategy in the money market.
Ncube claimed that there has been price stability and increased use of the ZiG since its introduction in April this year.
He reiterated that the economy will likely record a 2% growth this year, downward from 3.5% from the previous year.
Following the presentation of the policy review statement, parliamentarians started hurling nasty words at each other with the opposition demanding that the matter be debated and Zanu PF lawmakers fighting back to force the adjournment of the august house.
One of the Zanu PF parliamentarians was heard telling opposition legislators that “you should get out of here and leave us to do what we want, afterall we are the ruling party … That’s what power is all about.”
Opposition lawmakers hit back saying parliament is being reduced to a kangaroo court. An unidentified parliamentarian said, “This is a useless parliament. Stay behind with your rotten ideas … You are dictators.”
Parliament was adjourned to August 20.
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