On taxation, Mr Speaker Sir, we would not bother adding any cent or extra burden on the poor people. In fact, Zimbabwe’s tax rate is one of the highest in the world. So, instead of increasing we would reduce it and target property tax where the rich people are. We would also target taxation of luxury trinkets, fuel, farms and increase taxation for holding unproductive land. That is where you get the rich.
The other problem – I am still talking about stabilisation and the alternatives to stabilisation. I am running down elements in the stabilisation baskets and proffering the solution. Under stabilisation they talk of flexible labour markets and I am now talking as a trade unionist. They are talking about flexible labour markets or soft labour markets. One issue which features on stabilisation measures is the adoption of flexible labour markets to create soft labour markets where you reduce the cost of labour and you lay off workers as opposed to giving living wages. That is one approach where we think you have to invite a social contract or dialogue. You cannot just introduce flexible labour market measures without consulting the trade unions and the employers’ associations. We need a social contract and social dialogue to move the country forward.
Mr. Speaker Sir, there is also need to create social safety nets for those people who are going to bear the brand of stabilisation. You need these social safety nets to protect the vulnerable groups that are going to be affected by these austerity measures which have been introduced by the Minister. So, my point is that, in tightening the belt, everyone must the bear the cost, not just the poor people. I respectfully submit that the 2% tax hurts the poor more than the rich people. That is why it has to be revised or scratched.
The other point is that this 2% did not come through a Finance Bill. You may recall that we need a Finance Act or a Finance Bill to effect all revenue proposals. This 2% has not gone through a Finance Bill. I am aware that this matter is now under litigation – the Minister has been taken to court by a number of affected people.
Now, I move away from the transformation agenda after having picked the basket of those measures, analysed them and proffered what I believe are alternatives. I now go on to what our transformation agenda would be or is. We are not into stabilisation but we are into real socio-economic structrural transformation to eradicate poverty and initiate economic development. Mr. Speaker Sir, the first thing which we need is inclusive growth or shared growth. This economy must go back on a growth path/pedestal. We want growth rates of 7%, 8% or 9% per annum.
An Hon. Member having walked into the House without acknowledging the Chair.
THE HON. SPEAKER: Order, order. The Hon. Member who has just come in here, the rule says you have to acknowledge the Chair.
HON. DR. MASHAKADA: Thank you Mr. Speaker Sir.
Another Hon. Member having walked into the House again without acknowledging the Chair.
THE HON. SPEAKER: Order, order. Hon. Members, during the induction workshop, you were taught that each time you enter, you must make obeisance to the Chair – and not the Chair Hon. Mudenda but to this Chair of Parliament which shall be occupied by other people in as much as other people occupy this Chair. So, you make obeisance to the Chair and not to an individual. Now, if I will notice a Member just walking in, I will ask that Member to walk out zvachose.
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