Zimbabwe Taxation
Question
Write an analysis of the developments of the taxation system in Zimbabwe from pre to post colonial Zimbabwe (25)
The tax system currently enforced in Zimbabwe under the authority of the Income tax Act Chap 23.06 with Acts like the Capital Gains Act Chap 23.01, Finance Act Chap 23.04 and the Excise duties Act as complimentary. The system evolved from traditional ideologies perpetuated from pre pre-colonial era up to now. The incidence of tax from a traditional perspective occurred from as far as the Rozvi State who was allowed to maintain their power and control by the Portuguese Traders which resulted in the development of the tributary system. In which tribute was to be paid in form of farm produce, animal skins, fish and various goods. Every person under the protection of the kingdom and within the chief’s jurisdiction was to pay tribute from their occupational activity. This tributary system was mainly instigated by military control and any person revoking this tradition was punished. This traditional view is reflected in the modern tax system as there are some synonymous traits which have of course been duly developed over time.
The presence of the British settlers saw the tax system being inclined towards politics and social classes or race in other words. In 1894 Hut Tax was introduced and was set at 10 shillings per hut and this tax was imposed on each adult male. The tax was paid to the British South Africa company which was the agent of the colonial government in the area even though it was initially authorised by the Colonial Office in London. Hut Tax was paid in the form of money, labour, grain or livestock and the colonial Authorities in this case the British were the beneficiaries. This tax benefited the white minority as they raised money, enhanced their economy’s liquidity (cash wise, thus supporting the currency), facilitating further
Write an analysis of the developments of the taxation system in Zimbabwe from pre to post colonial Zimbabwe (25)
The tax system currently enforced in Zimbabwe under the authority of the Income tax Act Chap 23.06 with Acts like the Capital Gains Act Chap 23.01, Finance Act Chap 23.04 and the Excise duties Act as complimentary. The system evolved from traditional ideologies perpetuated from pre pre-colonial era up to now. The incidence of tax from a traditional perspective occurred from as far as the Rozvi State who was allowed to maintain their power and control by the Portuguese Traders which resulted in the development of the tributary system. In which tribute was to be paid in form of farm produce, animal skins, fish and various goods. Every person under the protection of the kingdom and within the chief’s jurisdiction was to pay tribute from their occupational activity. This tributary system was mainly instigated by military control and any person revoking this tradition was punished. This traditional view is reflected in the modern tax system as there are some synonymous traits which have of course been duly developed over time.
The presence of the British settlers saw the tax system being inclined towards politics and social classes or race in other words. In 1894 Hut Tax was introduced and was set at 10 shillings per hut and this tax was imposed on each adult male. The tax was paid to the British South Africa company which was the agent of the colonial government in the area even though it was initially authorised by the Colonial Office in London. Hut Tax was paid in the form of money, labour, grain or livestock and the colonial Authorities in this case the British were the beneficiaries. This tax benefited the white minority as they raised money, enhanced their economy’s liquidity (cash wise, thus supporting the currency), facilitating further
References: 1. AFRODAD ( AFRICA FORUM & NETWORK ON DEBT AND DEVELOPMENT) A critical look on the Zimbabwean tax system, 2011 2. TAX STUDY GUIDE FOR ZIMBABWEAN STUDENTS, J FORE, 2006 3. www.zimra.co.zw 4. AFRICAN HERITAGE, BOOK 1, Longman 5. Income Tax Act [chap 23.06] 6. www.historyofzimbabwe.com