Pay Presumptive Tax For Smooth Public Health Service Delivery

PARLIAMENTARIANS have urged small business owners to pay taxes so as to support government’s efforts to deliver quality health services in public health instritutions.

By Fadzayi Ndangana

Addressing a virtual meetingĀ  on Tax Justice and Gender Responsive Public Services (GRPS) Summit earlier today, Chairperson for the Parliamentary Committee on Health Dr Ruth Labode said a as country , there is need to pay taxes in order to improve service delivery in our health institutions.

When Mthuli proposed the $30 for tax, I was in support because our hospitals must be public funded. We must remove that band which says health is for those who can afford it. Public Service should be delivered by the state and we need those taxes to deliver,ā€ said Dr Labode.

She added that there is need to do more sensitization since it is not yet clear who should pay this $30. The policy move was announced in parliament by Finance Minister Mthuli Ncube while presenting his 2021 budget.

ā€œHonourable Members would be aware that Government has implemented a presumptive tax structure on informal businesses that include micro and small enterprises, with a view to ensure that they contribute to the Fiscus,ā€ Ncube said.

ā€œA number of enterprises operate from designated business premises where the landlords are either Local Authorities or private property owners such as the Gulf Complex and Kwame Mall, among others. Their place of business is, thus, comprised of partitioned units in commercial buildings,” said minister Ncube.

He added that the fixed nature of business, thus, presents an opportunity for the tax administration to improve tax collections from presumptive taxes. I, therefore, propose to introduce a presumptive tax of an equivalent of US$30 per unit per month.

ā€œLandlords will be responsible for the collection of the above taxes which take effect from 1 January 2021. Landlords that fail to collect and remit the tax will be subject to a penalty equivalent to the amount of tax payable and interest. Furthermore, landlords have the responsibility to keep accurate records regarding the number of occupants or operators in respective properties, in order to facilitate administration of tax.ā€

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