HARARE, 21 January 2010 (PlusNews) – A plan to expand the three percent AIDS levy to include those in the informal sector could have a negative impact on the lives of Zimbabweans, analysts have warned.
In July 2009, the consultants carrying out a mid-term review of the Zimbabwe 2006-2010 National HIV and AIDS Strategic Plan recommended that the low level of funding for HIV/AIDS be improved by obtaining part of the money from value added taxation (VAT), a sales tax.
-The pandemic (HIV/AIDS) affected people from all walks of life and therefore everyone should make a contribution through the Value Added Tax system, rather than rely on individuals in formal employment and the corporate sector, the consultants’ team leader suggested.
The AIDS levy introduced in 1999 to compensate for declining donor support consists of a three percent tax deducted from the salaries of formally employed workers and companies, but low salaries and the poor performance of industry have meant that not enough money has been collected.
Japhet Moyo, acting secretary-general of the Zimbabwe Congress of Trade Unions (ZCTU), said only 10 percent of Zimbabweans were formally employed. If the new plan was adopted, most people in informal employment — an offshoot of an economy that has languished in the doldrums for about 10 years — would also contribute.
The National AIDS Council (NAC) has indicated that it would soon present proposals to the government on how to administer the revenue from the VAT system.
