OPINION: Why The High Court Ruling On 2% Tax Might Not Change Anything

Earlier on today Justice Zhou ruled that the 2% tax imposed by treasury last year was illegal. Expects have analysed the judgement and opined their take on the whole issue. An editor for NewsWire said parliament approved Finance Act that made the 2% tax effective:

By passing the Finance Acts authorising the 2019 budget, and the subsequent supplementary budget issued on August 1, both of which allow for the 2% tax, Parliament approved the measure. The 2019 annual budget was passed by the Lower House of Parliament on December 20 in 2018 and by Senate in January, while the supplementary budget was passed by both houses this August.

However, Parliament, by a vote of 80 to 26, voted through Clause 4 of the Finance Bill, which allowed for the 2% tax. Senate then also passed it.

The 2% tax was very unpopular when it was introduced in October last year. Other sources claim it has always been in the pipeline. Ncube according to NewsWire in a series of interviews prior to his appointment as the Finance Ministry Gaffer had been quoted to have suggested “clever technological ways to collecting revenue” that could broaden the tax base when he was still outside the government.

More: NewsWire