Share

Cash-strapped Zimbabwe to tax mobile phones

Harare - Zimbabwe's finance minister on Thursday announced a raft of tax hikes, including on mobile phones, in a bid to boost dwindling government revenue as economic growth stalls.

Harare is facing a revenue crisis so severe it has been forced to stagger civil servants' pay days as businesses have closed, foreign investment has slumped and imports have risen.

Finance Minister Patrick Chinamasa cut his output for economic growth to 3.1% this year, from a previous forecast of 6.1%, "in view of under-performance in manufacturing".

"The slowdown in gross domestic product growth is also reflected in reduced revenue collections, depressed exports and imports," he said in his mid-term budget speech to parliament.

To boost government coffers, Chinamasa announced a 5% increase in mobile phone airtime and a 25% import duty on mobile phone handsets.

Excise duty on petrol will go up to 30 US cents from 25 cents a litre and the import duty on motor vehicles will rise by between 15% and 20%.

"Additional revenue collection will be unavoidable," Chinamasa said.

Zimbabwe's economy has been on a downturn for over a decade which has seen companies shutting down, downsizing or migrating to neighbouring countries.

President Robert Mugabe has led the country since 1980 but his decades in power have increasingly been characterised by corruption, economic crisis and persecution of political opponents.

Central Bank chief John Mangudya in August said foreign investment more than halved in the first half of 2014, warning that Zimbabwe must "fight the negative perception" that was scaring off capital.

Imports were more than double exports at $3bn in the first half of the year. Of that, 42% came from South Africa, followed by Singapore and China, Chinamasa said.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.00
-0.5%
Rand - Pound
23.95
-0.2%
Rand - Euro
20.50
-0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.5%
Platinum
895.30
-0.2%
Palladium
991.47
-1.0%
Gold
2,194.13
-0.0%
Silver
24.44
-0.8%
Brent-ruolie
86.09
-0.2%
Top 40
67,910
+0.3%
All Share
74,134
+0.3%
Resource 10
56,271
+1.1%
Industrial 25
103,558
+0.3%
Financial 15
16,498
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders