Zimbabwe banks making a killing from charges, over 84% of their profit is from bank charges

Zimbabwe banks making a killing from charges, over 84% of their profit is from bank charges

HON. GONESE: The original question’s import was whether the Government had a policy relating to vulnerable groups and in particular those with disabilities; the elderly were mentioned.  I would also add those people who have chronic illnesses and so on, pensioners. My supplementary question is whether Government has considered having a moratorium for those specific groups who are disadvantaged and vulnerable because his response was just general. The question was whether he can come up with a position of Government. 

HON. CHIDUWA: On pensioners, I think they are exempt from IMTT and on the bank charges; the issue that is being asked is whether we should come up with a moratorium. I think this is something that we can consider but at the moment we do not have such a policy.

HON. TEKESHE: I just want to know from the Minister, we are talking of interest rates which are very high but banking is about interests. We are supposed to be getting interests when we bank our money but at the moment you bank your money and it is all eroded by bank charges. Why are we not getting any interests from the money we are investing in the banks?

THE HON. SPEAKER: Hon. Member, I thought Hon. Gonese had brought us back to the relevance. It is a question of the pensioners – [HON. MEMBERS: Inaudible interjections.] – Can I hear Hon. Chinyanganya, what were you saying? I had closed supplementary questions.

HON. CHINYANGANYA: You have ruled him out, so it follows that there is supposed to be another one.

THE HON. SPEAKER: Yes, you have not spoken. Hon. Mliswa is speaking a lot.

HON. CHINYANGANYA: Thank you Mr. Speaker for indulging me. My supplementary question is, the Hon. Minister was only responding on the issue of bank charges but there is the mandatory Government aspect of taxes; the 4% and 2% tax charges on transfers. He never talked about those. What is…

THE HON. SPEAKER: Hon. Member, we were talking about the pensioners and other vulnerable groups. Do not go into another field please. Stick to the original question.

HON. CHINYANGANYA:  Hon. Speaker, can you give me the chance to ask my question.  I am saying they are also affected by those Government mandatory taxes on money transfers.  So, what is Government doing to assist those vulnerable groups not to be charged IMTT?

HON. CHIDUWA:  On the issue of IMTT, I think I had responded to that.

THE HON. SPEAKER:  The question is; can the pensioners be exempted from that tax?

HON. CHIDUWA:  Mr. Speaker Sir, I think these are issues that have been asked, whether there can be a moratorium on that and I said those are issues we can look at and deliberate further on.

HON. T. MLISWA:  On a point of clarity Mr. Speaker Sir.  The Hon. Deputy Minister said inflation is high and because of that, the banks have increased the interest rates but the salaries that people are getting are not high.  So, how then can interest be high when the people’s salaries have not been increased according to inflation?  If inflation is high, the people’s salaries must be increased so that the bank interest is high.  I want clarity on that from an economic point of view.  How does it work?

THE HON. SPEAKER:  That point of clarification does not arise because it does not relate to the pensioners.

Hon. Members, I want to remind you that we have not forgotten the issue of attendance by the Hon. Ministers.  At the close of the session, we will do a wrap up of those Members who have not come and then on Thursday, a motion shall be moved accordingly in terms of Sections 27 and 67 of the Standing Orders as read together with Section 107 (2) of the Constitution.  I thank you.



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