Uproar over cancer levy plan

Theoppy Ncube
Staff Reporter

BULAWAYO — Plans to introduce a cancer levy have caused an uproar among many who argue that it would exert an unbearable strain on workers whose incomes are already heavily taxed.Last month, Movement for Democratic Change vice president Thokozani Khupe moved a motion in Parliament for the introduction of a cancer levy, which received considerable support in the National Assembly.

While the idea would certainly ease the plight of cancer patients, questions have been raised as to whether the timing of the levy would be appropriate given the plight of Zimbabwean workers.

Economist, John Robertson, said the levy would be damaging to the country’s economy as it would reduce disposable incomes.
“Are we going to introduce levies for every disease which includes malaria and bilharzia? People have raised funds for such diseases as cancer through charity, sponsors and donors. At the moment we do not have an income to cater for such a thing,” Robertson said.
Not only is the general populace in the country failing to make ends meet, but Zimbabwe is in a state where companies are folding.
Estimates indicate that over 300 employees are being retrenched every week, according to recent figures by the Zimbabwe Congress of Trade Unions.
Civil servants, who constitute the bulk of the workers, are presently earning way below the poverty datum line (PDL).
Zimbabwean workers are already among the heavily taxed employees in the world.

They are taxed at 20 percent of taxable income above US$250 (tax free threshold), while Value Added Tax is at 15 percent.

About four percent of their salaries go towards the National Social Security Authority levy, while the employer contributes the other half.  
Add to that, they also pay an Aids Levy which is compulsorily levied on workers at three percent of their salary.
If successfully adopted, the cancer levy is set to be introduced in the 2014 National Budget.

Analysts said the cancer levy would put pressure on workers’ salaries, describing the idea as not only insensitive but unworkable.

David Dzatsunga, chairperson of Apex Council, said government must consider the plight of workers and that people were earning below the PDL.
“This move is ill advised at the moment,” said Dzatsunga.
About 7 000 new cancer cases are recorded annually in the country, up from 3 000 recorded in 2007.