WATCH: CCC MP Madzivanyika Says Taxes Should Be On Income Not Wealth

Citizens Coalition for Change (CCC) Member of Parliament for Mbizo constituency, Corban Madzivanyika, has argued that taxes should be imposed on income rather than wealth. He made this statement in response to a proposal by Finance Minister Mthuli Ncube to introduce a wealth tax on residential properties worth US$100,000 and above.

Ncube had proposed the tax in the national budget, stating that it aimed to address the regressive nature of the current tax system. He believed that low-income individuals were paying a higher percentage of their income in taxes compared to those with higher incomes. To rectify this inequality, Ncube suggested a Wealth Tax of 1% on the market value of residential properties worth at least US$100,000. The revenue generated from this tax would be used for urban infrastructure development.

Madzivanyika argued that the proposed house tax was unfair because property owners had already paid various income taxes to acquire their properties. He believed that taxes should be based on income rather than wealth. Madzivanyika provided an example of an elderly person who had acquired a house for US$60,000. This individual had paid income taxes, value-added taxes (VAT), and potentially capital gains taxes to acquire the property. Madzivanyika believed it was unfair to impose an additional tax on the property’s increased value. Watch the video below for more.