Big tax hikes in 'broke' Zimbabwe (BBC News)

[Anarcho-Socialist]

Zimbabwe's finance minister has imposed a string of tax rises to bridge a huge spending shortfall and the effects of drought and slum clearances. A tax on drinks and cigarettes has been increased by 50% and mobile phone airtime will also be subjected to a 22.5% tax, Herbert Murerwa said.

Zimbabwe is beset with shortages of food, fuel and foreign currency, and rampant unemployment and inflation. An opposition MP said the extra budget showed that the government was "broke".

South Africa is considering giving an emergency loan to Zimbabwe, so it can repay its debts to the International Monetary Fund and avoid expulsion. From September public transport buses will have to pay a quarterly tax and VAT will be raised by 2.5% to 17.5%, Mr Murerwa announced in a supplementary budget.

From the measures, Mr Murerwa said he hoped to raise 6.6 trillion Zimbabwean dollars, which is $356m at the official exchange rate and $146m on the black market rate.

More at: http://news.bbc.co.uk/1/hi/world/africa/4159152.stm

[Kipling]

1. South Africa is GIVING THE BASTARD A LOAN?

Disgusting.

[Anarcho-Socialist]

2. It's wrong on many levels

Firstly, Mugabe is a sexist, misogynist, homophobic dictator and South Africa should know better than to prop him up. The longer Mugabe and his allies remain in power the instability will continue.

Secondly, I seriously doubt Mugabe is going to repay any money borrowed to him. Recently he's been forced to sell land/real estate (originally meant for distribution to the poor) to China and Libya in exchange for foreign currency and oil.

Mugabe is too proud to admit his attempt to implement Maoism hasn't done any favours for Zimbabwe. Although he has succeeded in replicating the starvation of China under Mao.