Our Finance Minister does not miss an opportunity to laud the positive effect that the 2% tax has had on government revenue and once again he has come out and said the revenue collection is growing exponentially.
In an interview conducted by the Herald, Prof Ncube claimed that the Ministry is raking in close to $80m every month;
We are averaging around $80 million a month in terms of collection because we gave quite a lot exemptions abd we believe that at this level it’s okay and that we’ll go a long way in supporting the social infrastructure and social services. We have said what we are targeting is education, health services and devolution – the cost of devolution is $310 million
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Of the $80 million a staggering $50 million was attributed to the 2% tax…
The devolution Mthuli speaks of is the surrender of powers to local authorities by central government. It will change the way decisions are made for local areas and how public services are funded.
Ideally, this will result in more effective, better targeted public services, greater growth and stronger partnerships between public, private and community leaders in local areas. Without devolution, decisions will continue to be made centrally and removed from communities that they affect.
Mthuli Ncube once again emphasised that the funds collected from the 2% tax will be directed to public services such as education and health. Previously, Mthuli stated that the funds from the 2% tax will go towards fixing water and sanitation.
Echoing these statements was Accountant-General Mr Daniel Muchemwa who said the funds will NOT go to paying salaries:
I am glad to say that this January we managed to collect $50 million on 2% tax. We will spend that money on PSIP (Public Sector Investment Programme) projects and not on salaries. I would like to applaud Government for such efforts, which have seen the raising of the money which will be channelled towards funding PSIP projects.