By Own Correspondent

THE government is overtaxing workers to death, the latest Zimbabwe Revenue Authority (ZIMRA) performance report for the first quarter of 2021 has revealed.

The ZIMRA report shows that individuals, through pay-as-you-earn (Paye), contributed 17,9% of the overall quarterly tax figure while corporations contributed 15,3%.

“Tax collected from individuals grew nominally by 97,48% in Q1 2022 as compared to the same period in 2021. This is largely a reflection of general wage increases made in different sectors in order to cushion employees against the rising cost of living,” said the Zimra report.

However experts said the statistics were clear testimony that workers were being overtaxed, which has left them struggling to make ends meet on the little that remained after tax in the wake of galloping prices of basic goods and services being driven by runaway inflation.

Labour activists contend that workers in Zimbabwe were overtaxed compared to other countries in the region because of the heavy basket of taxes besides Paye , which is as high as 40%, there is also  the National Social Security Authority tax and on top of that the workers’ pay other indirect taxes like the 2% (intermediated money transfer tax) IMTT.

This adds to  taxes charged by local authorities over and above that VAT (value-added tax).

For years, complaints have been raised over the amounts one is left with after tax deductions which is  a small fraction of the gross salary and that is a reflection of the nature of austerity that we have.