Biti and Mthuli Ncube battle it out over rationale of 2 percent tax

HON. PROF. M. NCUBE: Thank you Hon. Speaker Sir, and I thank the Hon. Member for that question. Clearly this new dispensation is not – [HON.  MEMBERS: Inaudible interjections.] –

THE HON. SPEAKER: Order at the back there!

HON. PROF. M. NCUBE: Clearly this new dispensation is not anti-poor. On the contrary, it is pro-poor. We have explained this in our vision 2030 where we say that one of those pillars is to achieve inclusive growth, which really means that we are sensitive to those, if I can use the term at the bottom of the pyramid in terms of income. The issue was really to make sure that those who are in the informal sector are netted in and also contribute to the fiscus and they become responsible citizens. After all, those who contribute to the fiscus also have better citizenry priorities. They demand better services and accountability. So, it is important that everyone contributes to the tax revenue.

Certainly we are pro-poor and you will see that when it comes to the budget. This year we are going to comply with the constitutional provision that 5% of the budget should go to the provinces. We hope that the Hon. Member within their provincial council will make sure those resources are applied properly to programmes that will uplift the poor communities around the country. One of the variables we will use in the allocation formula is poverty levels. We have got an up to date poverty map of Zimbabwe by province and by district and our allocation, that 5%, will be according to that poverty map. Thank you Hon. Speaker.

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