Retail Workers Want To Be Exempted From Paying Income Tax

Workers in the retail and wholesale sector have appealed to the Government to exempt those whose earnings are below the prescribed minimum wage from being taxed.

Addressing journalists in Harare, Progressive Retail Wholesale Workers Union of Zimbabwe secretary-general Phillip Mafundu implored the Government to review the tax bracket saying the current system is leaving them poorer. Said Mafundu (via NewsDay):

We appeal to the Finance Minister (Mthuli Ncube) to revisit the issue of taxing to say how can someone who is getting US$265, which is not even a living wage, be taxed? It is our view again to say the tax bracket should be changed.

They say US$100 is tax-free, and then what can we do with US$100? Our proposal is very simple, we are saying if the government wants to tax its citizens the tax should start from a living wage where I get something that is above the basic.

If we calculate our basics and they come to US$300-400 that should be taxed, but if I am left with US$100 and you tax that automatically I cannot even pay my rent.

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So that is the concern, the minimum wage should be raised and the tax bracket should also be raised. The minimum wage should not even be taxed.

Mafundu said tuckshops and unregistered traders were benefiting from the current situation by not paying their workers a living wage and demanded that they comply.

He also urged the National Employment Council (NEC) of the commercial sector to implement the new section 56 of the Labour Act [Chapter 28:10] and allow other unions with membership to negotiate for their members saying workers in the sector.

More: Pindula News