The latest figures revealed by the government shows that the government is raking in good money from the much-hated 2% tax. As of the 26th of December 2018, the government had surpassed its monthly target with $129,1 million by collecting as much as $572.4 million. According to the Finance Ministry, the tax which was introduced in October to much of the public’s anger is going to be used to rehabilitate water and sanitation infrastructure.The government said:
Revenue collection efficiencies are part of the government of Zimbabwe’s efforts to enhance resource mobilisation. The two per cent tax is part of this effort. As a result, in December 2018 up to the 26, $572,4 was raised surpassing the monthly target by $129,1 million.
Obviously, the spending thrill that comes with the festive season is the major reason that the government has collected more-than-expected revenue in December. Come January, it’s most likely that it will collect lower-than-expected revenue because people will no longer be as extravagant as they were in December (owing to January disease).
Although the Finance Minister says that people have embraced the tax, but just like any other type of tax it has increased the cost of doing business which is quite unhealthy in the prevailing economic atmosphere. No wonder why some are avoiding paying this tax by going through a tedious process of sending money in batches (follow this link to know more about how people are avoiding paying the 2%tax).
The Republic of Zimbabwe is a country located in the Southern Africa region. Its capital city is :Harare and the country has 10 provinces. Zimbabwe is 390,580 sq km and is bordered on all sides by other countries (Zambia in the north, South Africa in... Read More About Zimbabwe