Emmerson Njanjamangezi, Group Features Editor 
THE 2022 budget must commit resources to industrialisation, specifically by coming up with a resource envelope that value chain players can tap into.
In its draft pre-budget submissions, the Confederation of Zimbabwe Industries (CZI) said though the National Development Strategy (NDS1) has identified priority value chains, there are deep and embedded challenges, which require stimulation to kick-start.
“Mechanisms can be put in place to ensure that the resources are accessible only for ring-fenced uses, with limited possibilities of diversion,” reads part of the statement.
Last year, the government put together a $18 billion stimulus package to kick-start the economy after the ruinous Covid-19 pandemic first hit Zimbabwe’s shores.
However, fiscal authorities later diverted a huge chunk of that kitty to fund agricultural projects, leaving industry in need of fresh funding to enhance production.
“Efforts should be more on export promotion by minimising taxation of exports. The current export tax regime needs to be reviewed to eliminate and reduce export taxes.
“For example, exporters pay up to 45 percent cumulatively in taxes. While the tax incentives that have been introduced are welcome, the export surrender requirements need to be reviewed downwards, especially in the face of exchange rate distortions, which are threatening the viability of exporting manufacturing firms.”
CZI added that the budget should prioritise increasing the spending power of the population.
“In addition to the general need to review upwards civil servants’ salaries, widening the PAYE tax bands and increasing the tax-free threshold will help create more disposable income for the workers.
“Prioritising social safety nets will also help ensure that the vulnerable population can at least afford some basic needs, which industry would help meet,” further read the statement.
