Finance Minister Mthuli Ncube Has Responded To Critics Of His 2024 National Budget
Finance, Economic Development, and Investments Promotion Minister Mthuli Ncube has responded to critics of his 2024 national budget, stating that the targeted revenue will benefit ordinary Zimbabweans. Ncube presented a ZWL$58.2 trillion budget, projecting a domestic economic growth of 3.5% for the next year. The budget includes new taxes such as increased fuel prices, tollgate fees, vehicle registration fees, and a sugar levy.
Critics, including the main opposition Citizens Coalition for Change and economists, have labelled the budget as “anti-people” due to the taxes that they believe will worsen the already difficult situation for the impoverished majority of Zimbabweans.
In an interview with NewsDay Zimbabwe, Ncube defended the budget, stating that when the government raises resources through taxes, they are used to provide services and support citizens. He was quoted as saying:
It is always pro-people. The question is which people?
For example, if you look at the issue of the wealth tax, we have been very clear to say first of all it’s a redistributive mechanism which is normal in any tax system but, secondly, we are also keen to use these resources to support infrastructural development in urban areas.
We have a large population in the urban areas. It is pro those people where the infrastructure will be developed.
If you look at the issue, for example, of the surcharge on sugar drinks, … we have argued that from the resources that we were able to gather there seems to be some correlation with excessive sugar consumption … to the fizzy drinks and so forth with cancer.
We are trying to create a cancer fund from a special levy on sugar drinks, that is pro-people because it is the people who are suffering from a sharp increase in cancer cases and non-communicable diseases are a problem.
Regarding the mining sector, Ncube highlighted that the budget includes a 1% tax on mining revenues, which is intended to benefit local communities where the minerals are being extracted. He emphasised the government’s commitment to ensuring that Zimbabweans benefit more from their natural resources through increased beneficiation.
Critics argue that the budget places an additional burden on ordinary people who are already struggling with high taxes and low incomes. This is especially true for workers, including government employees, who have been demanding the restoration of their salaries to pre-October 2018 levels, which were around US$500. Currently, they receive an average of US$300, significantly lower than their previous earnings. These workers have been engaging with their employers for years to address this issue and improve their financial situation and taxes will further erode their income.
