Finance and Economic Development Minister Professor Mthuli Ncube says the Government will continue doing the right thing even when it’s not popular, saying the Intermediated Money Transfer Tax (IMTT), popularly referred to as 2 percent, has enabled Government to attend expeditiously to the Cyclone Idai disaster and critical infrastructural work without resorting to borrowing as was the case previously.
Writing in his weekly column Professor Ncube said that Government had managed to provide a 10th of the $1 billion required to cater for non-infrastructure supplies as well as quick infrastructure rehabilitation of roads and bridges, power, communication, irrigation, housing and water and the dualisation of Norton strip of the Harare-Bulawayo Highway.
The Norton strip is expected to be opened by President Mnangagwa soon after the completion of the construction of a road over rail bridge along the same stretch, which is underway.
“From a Governmental perspective, Cyclone Idai necessitated an urgent and immediate need for resource mobilisation to mitigate against its effects and support those affected. In the past, this would have meant further Government borrowing, leading to extra debt and long term economic ramifications,” he said.
“In the past, this would have meant further Government borrowing, leading to extra debt and long term economic ramifications. But fortunately, funds from the 2 percent tax that were put aside for exactly this eventuality, and became available exactly when they were most needed. We had initially earmarked $50 million to cover the emergency requirements for mitigating the impact of such a disaster, yet due to the increased performance of the fund, we were able to increase this allocation to a much needed $100 million.
These funds are being used to help those who are most in need of our help.”
Professor Ncube said while the 2 percent levy had been handy in assisting Government to attend to pressing needs, the magnitude of the Cyclone Idai disaster and the work that is still outstanding had raised the need for long term economic planning and sobriety, even if it is unpopular.State media
