Fight Inequality Alliance (FIA) Zimbabwe, a network of organisations that seeks fair distribution of wealth, power, opportunities and control of resources in the country says it is in full support of the introduction of wealth tax as it reduces the inequality gap.
Recently, participants at the multi stakeholder post budget analysis meeting held in Harare said the inequality gap between the rich and the poor was worrisome.
In an interview with 263chat, FIA Zimbabwe coordinator Angela Mandoreba said the inequality gap in the country was a cause for concern.
“As the Fight Inequality Alliance Zimbabwe we are in full support of the introduction of Wealth tax in the country, our support comes against the background of the current tax landscape in the country which evidence and research have shown that it is more on the regressive side than progressive on reference to the Oxfam’s commitment in reducing inequality index report they have produced.
“Our taxation issues system is found wanting with regards to the reduction of inequality at the end of the day what we know is that taxation should be there to redistribute wealth, resources in a society but then when we find a situation where taxation is rather widening inequality in a society it becomes a major cause for concern,” said Mandoreba
She said the introduction of the tax would be a moral measure for the distribution of resources which will go towards development cushioning of the poor.
“Fight Inequality Alliance Zimbabwe we are saying the introduction of a wealth tax is moral measure to redistribute resource, wealth in the country in the sense that if we really manage the super-rich and elites in Zimbabwe pay their fair share of taxes then the revenue from the wealth tax will go towards the developmental needs and cushioning of the poor in the midst of rising poverty and inequality.
“It is a potential revenue stream that does not increase burden on the poor and marginalised citizens and is one way of ensuring the elites pay their fair share of taxes. Proceeds can be ring-fenced to provide social safety nets which cushion poor citizens amidst rising poverty levels,” she said
Early this year FIA Zimbabwe petitioned Parliament seeking among other issues the reforming of the current ‘regressive’ tax regime that do not promote equal distribution of resources.
