In Zimbabwe, the transaction tax imposed last week has caused an outcry in the country. The Ministry of Finance has indicated that this 2% tax will be used for roads, health and education sectors.
As a result of this decision taken on October 1, prices for commodities such as cooking oil and flour have soared.
In Harare, the capital, people have been flooding shops for supplies as they worry about a shortage of other products such as milk, bread and sugar in the near future.
According to TERRENCE BANDA,
“People don’t know where we’re going with this situation, there’s no money, but commodity prices are rising every day, some products are no longer available while other stores have already closed, so people rush to those stores that are still open to make provisions,”
The tax will apply to payments by mobile phone and card as well as bank transfers exceeding US$10, with the exception of foreign payments and transfers of public funds.
But for some Zimbabweans, the increase in commodity prices has nothing to do with this tax decision.
“The problems Zimbabwe is currently facing are not the creation of the current government, they are the results of sabotage where there are illegal elements determined to destroy the economy, that is why there are food shortages, prices that rise to 300% per day, have nothing to do with tax or fuel, so it is totally the result of sabotage. Another inhabitant of Harare says.
According to economic analysts, this tax would bring in nearly 2 billion US dollars per annum for the State.