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George Guvamatanga, the Permanent Secretary in the Ministry of Finance has said that the 2% transactional tax was effective in covering the other sectors of the economy, particularly the informal sector which were not paying taxes.
Speaking to Trevor Ncube, the chairman of Alpha Media Holdings during the show “In Conversation With Trevor”, Guvamatanga observed however that there are some who are being double-taxed.
He also dismissed allegations that the tax was causing inflation in the country.
Watch the video below.
<blockquote class="twitter-tweet" data-dnt="true" data-width="550">
Is the 2% tax here to stay? Is government persuaded by strong opposition that the tax is causing price increases? George Guvamatanga <a href="https://twitter.com/GGuvamatanga?ref_src=twsrc%5Etfw">@GGuvamatanga</a> answers these questions and more. Watch Part 1&amp;2 👉 <a href="https://t.co/w040RJJAWO">https://t.co/w040RJJAWO</a> 👇🏽👇🏽👇🏽 <a href="https://t.co/ZNkJDLkP5I">pic.twitter.com/ZNkJDLkP5I</a>
— Trevor Ncube (@TrevorNcube) <a href="https://twitter.com/TrevorNcube/status/1191587964096262144?ref_src=twsrc%5Etfw">November 5, 2019</a></blockquote>
<script async="" charset="utf-8" src="https://platform.twitter.com/widgets.js"></script>
More: <a href="https://twitter.com/TrevorNcube/status/1191587964096262144">Trevor Ncube</a>

Pindula News

WATCH: Finance Secretary Speaks On The 2% Transactional Tax

Finance Minister, Professor Mthuli Ncube has said that the “painful” austerity measures were over and the country was now moving to adopt measures which stimulate growth.
In an interview with Zimpapers Television Network (ZTN), Prof Ncube said, that the coming rainy season will be critical for the agriculture sector and for power generation in the country. He added:
<blockquote>
But also, we expect the budget to be more supportive of growth. We have said the 2020 budget is about growth and productivity in the main and job creation, supporting competitiveness and of course making sure that we have shared growth.
So, that stance on growth and productivity, away from austerity – we have done austerity and it has served us well, it has created a good base and allowed us to do a lot of reforms, which have been painful. Now we’re ready to move to the next stage, which is to stimulate growth.
</blockquote>
Meanwhile, Ncube indicated that the two percent transactional tax, which for some is the face of austerity measures, <a href="https://news.pindula.co.zw/2019/10/08/zimra-defends-mthuli-ncubes-effective-2-transactional-tax/">was here to stay saying it can be a foundation for an effective tax regime in the country.</a>
Some analysts have urged authorities to <a href="https://news.pindula.co.zw/2019/10/17/zimbabwe-told-to-dollarise-to-crush-inflation-assure-growth/">re-dollarise in order to contain inflation and ensure growth.  </a>
More: <a href="http://www.newsdzezimbabwe.co.uk/2019/10/austerity-is-now-over-says-minister.html">News DzeZimbabwe</a>

"Austerity Measures Are Over, We’re Ready To Move To The Next Stage," Finance Minister

Nehanda Radio columnist, Ken Mufuka has claimed that the financial policies which have been implemented by both Finance Minister, Professor Mthuli Ncube and the Governor of the Reserve Bank of Zimbabwe, Dr John Mangudya have been tried elsewhere and have failed.
Mufuka added that the country needs to do away with the policies if it needs to revive the economy which is currently in a sorry state. Mufuka added:
<blockquote>The issue before us is that the ship of state, in which we are sailing, also carries two brothers, Jonah and his sibling (Ncube and Mangudya). Unless their policies are abandoned, the winds from the twin devils, the World Bank and the International Monetary Fund will sink us.
There is not a single country where the policies of these twin devils have been followed and met with success.</blockquote>
The duo’s financial reforms are characterised by the introduction of bond notes, introduction of austerity measures including the unpopular 2% transactional tax, and the introduction of Statutory Instrument (SI) 142 of 2019 which outlawed the multi-currency regime at the same time reintroducing the Zimbabwe dollar.
The economy has drastically deteriorated over the past 24 months but Ncube and Mangudya are adamant that their policies will eventually transform the economy.
More: <a href="https://nehandaradio.com/2019/10/17/letter-from-america-with-ken-mufuka-diaspora-the-future-lies-in-returning-to-africa/">Nehanda Radio</a>

"Financial Policies OF These Twin Devils Have Failed Elsewhere," - OPINION

The opposition MDC led by advocate Nelson Chamisa is contemplating spearheading an all-stakeholders Conference over the socio-economic crisis in the country.
The News Day reports that the party intends to engage churches, students, workers and all suffering Zimbabweans, including disgruntled Zanu PF supporters in a bid to build a united front to enhance the citizens’ determination.
Speaking to the publication, an unidentified party insider said:
<blockquote>We are consulting everyone so that this stops being an MDC against Zanu PF issue. We want a Zimbabwean solution. So as the movement which represents the majority, we want to convene an all-stakeholders conference, which will solidify the resolve of the people.</blockquote>
The development comes when the crisis in the country continues unabated. The Zimbabwean economy is inflationary, risking reminding people of the 2008 record high hyperinflation.
The health sector is also collapsed with public institutions operating without essentials such as machines and medicines for patients and the health workers industrial action which started on the 3rd of September this year is doing less to help the situation.
Zimbabwe has other issues including a huge deficit in water, fuel, electricity, food, foreign currency and cash.
More: <a href="https://www.newsday.co.zw/2019/10/chamisa-mulls-all-stakeholders-crisis-meeting/">News Day</a>

Chamisa Planning An All-Stakeholders Conference Over Crisis

Zimbabwe’s Finance Minister, Professor Mthuli Ncube in October 2018 said that he needed only six months to transform Zimbabwe.
He said that his policies would start to bear tangible results after six months. Ncube said:
<blockquote>If you give me six months, you will see changes, significant changes.
I have only been a Minister for one month. We need patience, we know what we are doing. What I can say to Zimbabweans is that they should give me six months to see the full impact of the changes from the policies that we have pursued.</blockquote>
It is over a year now since he said those words. It seems Zimbabwe’s economy continues to collapse despite a cocktail of measures by authorities meant to transport the country.
Inflation has been rising whilst shortages in cash, fuel, water, medicines, food, and electricity are still huge in the country.
More: <a href="https://twitter.com/zimlive/status/1181320734393749505">Zim Live</a>

"If You Give Me 6 Months, You'll See Changes, Significant Changes" Mthuli Ncube

Amalgamated Rural Teachers of Zimbabwe have said that the time was now conducive for citizens to stand against austerity measures. The statement comes after the government has put in place austerity measures which it says are meant to kickstart the collapsed economy. See ARTUZ’s statement below.
<blockquote>Time to take a stand against austerity.
05-10-2019
The teachers of Zimbabwe are earning less than US$ 50 per month, a big slash from the US$ 500 of the pre austerity measures era. The teachers are living in extreme poverty and all efforts to demand a living wage have been thwarted by the use of extreme violence by the State. The State has further sponsored divisions through yellow Unions.
The current teacher salary is not enough to secure basic needs for our hard working civil servants. Healthcare, education, shelter, transport, food and all other basics are now beyond our reach. A teacher’s salary cannot afford to buy 20kg of maize seed. Traditionally our teachers have engaged in subsistence farming to supplement their meagre earnings. This farming season teachers are totally excluded from farming. The rest of our peasant farmers will certainly fail to take to the fields further threatening the food security of our people.
The austerity induced economic crisis is set to deepen as production is being halted across sectors. The value addition chains have been disrupted and worse days are coming.
We have to take a stand as a people.
In August 2019 the Amalgamated Rural Teachers’ Union of Zimbabwe, ARTUZ warned government that if they fail to address the salaries crisis we will be forced to disrupt examinations. We were patient in August and September as we received the worst eroded salaries ever. We gave them a long rope but they chose to tie themselves.
We have concluded our nationwide consultations and our members will be indefinitely withdrawing their labour beginning 14 October 2019. We will not be reporting back for duty until we receive an interbank equivalent of our former US$ salaries.
We have written to other Unions inviting them to participate in this job action.
The teachers are suffering and we have to take a stand.
We warn Prof Mthuli Ncube to urgently address the salary crisis or risk collapsing the Civil Service.
*ARTUZ INFORMATION DEPARTMENT.* 
+263776129336/775643192</blockquote>
More: <a href="https://m.facebook.com/story.php?story_fbid=1257688967747320&amp;id=235941206588773&amp;refid=52&amp;_ft_=mf_story_key.1257688967747320%3Atop_level_post_id.1257688967747320%3Atl_objid.1257688967747320%3Acontent_owner_id_new.235941206588773%3Athrowback_story_fbid.1257688967747320%3Apage_id.235941206588773%3Astory_location.9%3Apage_insights.%7B%22235941206588773%22%3A%7B%22page_id%22%3A235941206588773%2C%22actor_id%22%3A235941206588773%2C%22dm%22%3A%7B%22isShare%22%3A0%2C%22originalPostOwnerID%22%3A0%7D%2C%22psn%22%3A%22EntStatusCreationStory%22%2C%22post_context%22%3A%7B%22object_fbtype%22%3A266%2C%22publish_time%22%3A1570178121%2C%22story_name%22%3A%22EntStatusCreationStory%22%2C%22story_fbid%22%3A%5B1257688967747320%5D%7D%2C%22role%22%3A1%2C%22sl%22%3A9%2C%22targets%22%3A%5B%7B%22actor_id%22%3A235941206588773%2C%22page_id%22%3A235941206588773%2C%22post_id%22%3A1257688967747320%2C%22role%22%3A1%2C%22share_id%22%3A0%7D%5D%7D%7D&amp;__tn__=-R">ARTUZ</a>

FULL TEXT: "Time To Stand Against Austerity Measures" - ARTUZ

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