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Your Views and Comments on The Budget

TOPIC: Import duty on capital equipment and goods

Original Post:
Chaksunlimited
17 October 2009 04:11.46
I understand one of the main source of revenue for this government is import duty and little from income tax because businesses are still under capitalised and unemployment is high. The government can stimulate formation of business by reducing import duty on capital goods and machinery. By reducing duty or eliminate duty on capital goods will stimulate growth as more people will find it attractive to invest especially Zimbabweans in diaspora. This will in turn mean more people employed. The more the people get employed the better the economy becomes the government will collect more income tax and it also means more people have more buying power. When buying power increase it  means more and more business will open or expand to provide goods and services.
To reduce misuse the government and put conditions for example 1. you need to have a registered company in Zimbabwe 2. a premises where the business operates from 3. Ministry can from time to time make visits to check if the is still there at the premises and if its movable the company should make sure the ministry knows about that. 4. you cannot sell the equipment before 2 years if you have no options but to sale of equipment the government will charge a penalty. 
Current Replies / Comments:
Rugare
26 May 2010 04:27.55

I agree with your views. I am a builder by profession but understand basic economics. It is important that as a nation we focus on producing. We can squeeze people to death with taxes but 100% of 0 is the same zero. Instead of harrasing Gershom Pasi and his team we should be looking at how to unlock production, increase employment and consequntly enlarging the tax base. If it is true I am encouraged by the ethanol project in Chisumbanje which is being recorded as with capacity to supply Zim with all its petrol need. Also encouraging is the proposed Rio Tinto power station in Gokwe to produce 1400 MW. Discouraging is the refusal by government to allow AccerloMittal from taking over ZISCO under the excuse that it is too large an investor. Is there sense in all this type of thinking. These are clear opportunities to increase the tax base and at the same time revive the economy.

You can do the best sums with little money still it will not work.Our minds must be liberated from fighting over petty cash. Let the ZISCOs work and collect tax, let the NRZ work and collect tax, let the farms work and collect tax. Let the mines work and collect tax. Give the building of roads to private companies and tighten on collecting tax. I was there as a kid in Rhodesia in the 70s. I was there as a child fighter carrying arms in the late 70s. I was there in the first 5 years of independence when the farms and industry were working. I know what a productive economy can do and this should basically be our focus. We can never reap what we are not sowing. The principle of harvesting is you forgo consumption now and wait for some time according to the type of seed and the harvest comes to enjoy. Short termism will not help, production first. So I agree, make acquisition of production inputs easy, remove the millions of laws that Zim has for someone starting a business, make tax registration easy and complying with tax laws easy and money will flow.

 

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By: Rugare on 26-May-10

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