Zimbabwe's government cannot afford to borrow, because it has to satisfy the Bretton Woods institutions that it is moving towards reducing its budget deficit. For now, the MPs have blocked the levy, but analysts say this is only temporary. Zimbabwe's parliament is generally seen as a club that simply approves proposals by the government. ''I would be surprised if the MPs stick to their guns. Only two of the 150 parliamentarians are from the opposition. The government wants to cause division between us and the people.'' Ruling party member of parliament John Tsimba told the House Thursday that the government was getting out of touch with reality and risked losing popularity among the people.
Zimbabwean workers are among the most heavily taxed in the world.
Corporate tax is pegged at 37.5 percent, while individual tax is on a sliding scale based on income. The highest paid workers pay as much as 40 percent in income tax. Workers also pay a five percent development levy and contribute to a compulsory government pension scheme. Law lecturer Welshman Ncube however, believes that Zimbabweans will bear the tax and the Bill will sail through without mass uprisings. It would take an organised society to resist this and I don't think we have reached that stage yet.