THE number of taxes imposed by the PF government is causing tax asphyxia in the citizens, says governance specialist Francisco Mumba.
Mumba said the taxes have robbed Zambians of the buying power disabling the famous more money in the pocket crèche’.
He said the philosophy of taxation was premised on the ability to pay and this is been violated everyday by government because the majority poor, inclusive of the middle-income brackets, are affected by the high volume of taxes in Zambia.
“PF government was ushered into government on a pro-poor assurance. However, the imposition of the asphyxiating taxes have disabled the buying power from the people’s net salaries leaving most Zambians gasping.
It is under the PF government, in 2018, that the income tax threshold reached an all-time high of 37.50 per cent. The PF’s economic model predicated on the capitalist framework encourages tax on profit and labour,” Mumba said.
He further said the capitalist model of economic management was crushing out human labour, leaving the mechanised form of jobs operated by a few thus putting pressure to tax high a few working class, leaving them asphyxiated.
Mumba added that the capitalist model of economic management was no respecter of needs and wants.
“However, it is quite clear with the available data that the highest revenue collection of PF government is tax on wages from labour. Taxes imposed on profits, especially the mines, have always been negotiated. This leaves government to impose tax on wages on labour and always uncompromising. Therefore, the current taxation system being employed by PF is an enemy of the working class,” he said.
He said the current debate to impose sales tax as opposed to the value added tax system was not predicated on the desire to benefit the working class but business.
He noted that both tax systems were modeled to encourage profit making of business houses.
“Adam Smith in his book Wealth of the Nations alluded to taxing wages on labour as the major revenue collection of government. The Zambian government imposes the following taxes among others currently; Value Added Taxes, Borehole tax, Pay as You Earn (PAYE), Property transfer taxes, Fees in form of toll gates, tariffs to mention but a few. Marx Fore saw this where he described that strong government and heavy taxes are identical. Be careful, when an undressed man says he would like to buy you clothes,” said Mumba.