New Zimbabwe.com

Ncube to launch Transitional Stabilisation Program next month

By Alois Vinga

FINANCE and Economic Development Minister, Mthuli Ncube has earmarked the launch of his Transitional and Stabilisation program for this coming month.

The envisaged economic blueprint will spell out the country’s economic agenda.

Addressing the media Monday morning, Ncube who did not reveal much about the document, hinted it shall try to proffer ways on how the country could enhance its revenue collection.

“We are working on it and by October it will be out. The world is expecting to see it,” he said.

“The program shall address issues to do with our taxation reforms, maximisation of revenue collection and fiscal consolidation.”

In his past remarks before assuming office, Ncube said he favoured a scenario in which the fiscal front is not an albatross on monetary policy.

“We also want to restore monetary policy, but at the moment, you know we don’t have full monetary policy. In so doing, that affects currency reforms and we are looking at several options and we will be able to come up with a plan,” he said.

However, economic analyst, Prosper Chitambara said that while the program was welcome, widening the country’s revenue collection base would be a challenge.

“Firstly there is need for the reform program to seriously address the loopholes that are rampant in our tax collection systems.

“However, much of the country’s capital is now circulating within the country’s informal sector and basing from the current turbulences existing in the informal economy, it may be difficult to collect revenue from this cluster,” he said.

He said there will be need to incentivise the formalisation of the informal economy and also address structural bottlenecks that impede business.

He also highlighted that the regulatory institutional framework needed redress which is inclined towards simplification.