It had to be a mistake, I couldn’t possibly owe the tax department (ZIMRA – Zimbabwe Revenue Authority) that amount. Even if I converted it to US dollars it would amount to an impossible figure – about 17,500 at the unofficial rate and 23,000 at the bank rate. I checked the email address – it was from a person with whom I’ve corresponded over the years. Then there was the wording; FINAL DEMAND. Where were the other demands? I did what any sensible person would have done and contacted my bookkeeper in a state of panic.
Alison was more than a bit puzzled but told me she couldn’t do anything without seeing how they’d got the figures. “Your are entitled to see what’s going on” she said. “Ask them for the ledger”
The last part of the ledger
The ledger was duly sent and the waters immediately became a lot murkier. It stated the figures were in US dollars and the numbers, if the currency was US dollars, were impossible. I sent it on to Alison. It was a while before she came back to me by which time my imagination had run riot. What if I really did owe 105 million dollars? I would have to buy it on the open market with my US dollars and would be left with no operating capital and nothing with which to pay wages. The company would be unlikely to survive.
Alison assured me that the figures on the ledger were Zimbabwe dollars and I probably did owe the 3,835,807 listed. She had no idea where the 105 million came from. “Ask them” she said. So I did.
The reply was abrupt; the 105 million was to be ignored (RTGS is another way of saying Zimbabwe dollars). The amount on the ledger was also incorrect as it didn’t account for some US$550 that I’d paid in presumptive tax (they are called Quarterly Payment Due or just QPD) which would have reduced the amount owed close to zero.
I speculated to Marianne that it was all just a bit of psychological bullying to get me to pay attention to the outstanding amount, then two days ago I bumped into Gary whose wife had had a strikingly similar experience.
Gary works for a seed company that occasionally uses my nursery to grow seedlings for various trials. They have a trial on ART Farm which is a neighbour to my nursery and I sometimes use it access my nursery so as to avoid the appalling direct road and take in a bit of soothing farm scenery on the way. Gary was having a look at one of their trials near the road so I stopped to chat.
We discussed various things then I related my experience with the tax authority. He said that Clare, his wife who works as a bookkeeper for a local church, had received a final letter of demand for payment from ZIMRA for an impossible amount about three months ago. She replied that as a church they were not liable for tax and any money made was given away to various charities and nothing more was heard. He agreed with me that as the government was desperate for money it was likely endorsing ZIMRA’s intimidation tactics to get in whatever money they could, maybe they were even giving a commission.
On getting to work I related the story to my senior foremen. They were decidedly cynical. “They are all on the take” opined Chingedzerai. “Yes”, added Fabian, “they see the rest of the government officials stealing and think that they should have some of the pie too. They see what they can bully you into paying and then split the extra between themselves”. It was obvious that they thought I was being naïve.
Marianne had been doing some questioning of her own and posted my problem on the local community WhatsApp group. Someone had responded with a name and phone number of a senior official at ZIMRA whom he thought would be able to help. I gave him a call and related my problem and asked if it was official ZIMRA policy to send out threatening demands based on nothing much at all. His indifference was striking; I should send him a copy of all the correspondence and documents and he’d forward it to the relevant manager. I duly sent him the copies but I am not expecting a reply.
It’s no secret that Zimbabwe is in deep financial trouble. Mismanagement, corruption and incompetence have seen our GDP plunge after the Mnangagwa government took power in a coup back in 2017.
At the time it was welcomed by the majority of the population who were relieved to be rid of the much hated and feared Mugabe regime but it was not long before the new government of E D Mnangagwa revealed its true colours of repression and corruption. Chingedzerai reminded me that the current administration has never bothered to investigate the estimated US$15 billion worth of diamonds that went unaccounted for from the Chiadzwa diamond fields in the east of the country in the latter part of the Mugabe era. More recently there was the gold smuggling exposé by al Jazeera that showed how top Zimbabwean officials were, with the highest approval, smuggling gold out of Zimbabwe and laundering the resulting cash. Indeed, for a country that is struggling financially, there is an eye-opening amount of property development around town. In the past this would have attracted the attention of ZIMRA who would have demanded to see the accounts of owners of expensive properties and made to account for the development. Now it’s easier, and more personally profitable, to send out threatening letters.
I paid wages on Tuesday. We chose the date years ago when getting cash from the bank at the end of the month meant enduring long queues and not getting the desired breakdown. Chingedzerai had heard the income tax limits had been increased and asked me to check on the internet before he entered the attendance and overtime figures on the computer. I was fairly sure it was only the Zimbabwe dollar tables that had changed but checked on the US dollar tables anyway (I have been paying my staff in the latter currency since August last year).
In Zimbabwe salaries are taxed monthly and the system is known by its acronym PAYE; Pay As You Earn. The rates are iniquitous. Wages are taxed from US$100 per month upwards! Given that the minimum agricultural wage starts at US$60 before any of the required allowances, most of my staff are taxed. Some do get age exemptions but the rest of them have to endure.
Such is the government’s demand for money that it has taken to taxing money transfers at 2% per transfer. It goes without saying that most transactions are cash though it’s not always possible. The government used to tax cash withdrawals from banks but gave up when it became evident that people were simply not depositing cash in order to avoid paying the tax.
Given the high cost of living and taxation in Zimbabwe one would assume that the majority of the population would be keen for a change of government. Indeed, given that we had a general and presidential election on Wednesday, one could be forgiven for thinking it imminent. With the recent exception of Zambia, southern African is not known for changing its governments and Zimbabwe is not about to become an exception too.
My foremen and I were all in agreement on this; the incumbent ZANU-PF party, which has maintained its grip on power since 1980 by means mostly foul, will certainly cheat its way to victory; only the level of the fiddle is not known. So far it’s been “limited” to delaying delivering voting papers to polling stations in regions known to be opposition strongholds, sending voters to polling stations where they found they weren’t registered, making sure one couldn’t check the online registration database and of course blatant intimidation. Few, if any, believe the logistical problems to be anything but deliberate. We remain cynical.
The bundles of 500 notes in bank wrappers were commonly known as bricks in 2008. Now it’s 2023 and they’re back!
The senior foreman said the customer wanted to pay in Zimbabwe dollars, cash, were we going to accept them? We didn’t have much of a choice as it is legal tender so I said yes and asked how much it was. 67,000 he replied. I groaned knowing they would be in small denominations. The biggest, $50, is worth all of US2.2c so I knew there would be quite a few bundles but the majority were $20 notes. We filled a medium-sized box.
Quite a few were in bank-sealed plastic bags of 500 notes which were called “bricks” back in the hyper inflation days of 2008. We didn’t bother counting them then and didn’t bother now. Back in those days the government attempted to get around the problem by printing ever larger denomination notes (an example is in the picture). Our inflation now is not quite that bad but anyway, local currency notes have largely been superseded by electronic money. It’s very easy to add zeros onto electronic money.
The other currency in Zimbabwe that is also legal tender is the US dollar. Having nothing to do with the government it is by far the most preferred. Although the government tries to set the exchange rate and can prosecute those not using it there is an easy work-around. It goes like this: the official rate is 1,097 Zimbabwe dollars to US$1 and with a few exceptions, fuel being one of them, businesses have to quote their prices in the local currency. On the unofficial market the rate is currently around 2,200 to one US dollar depending on to whom one is talking. Businesses price their goods in the Zimbabwe dollar and then offer a fat discount if you want to pay in US dollars – this effectively brings the official rate up to the unofficial one and it’s completely legal. Many businesses don’t bother with the official rate and just quote the unofficial one. My business is one of them and so far there hasn’t been a comeback.
There is a sense on around town that the unofficial rate is running again and people are offloading their Zimbabwe dollars. I sent the driver into town the day following the above deposit to get rid of the cash. In reality it was about US$30 so didn’t go far but I managed to find a fertilizer company accepting them and topped up with a bit of electronic money in the form of a debit card we managed to get a meaningful amount of agricultural chemicals bought.
The government is of course also looking for a dependable currency and has hit on tax as the easiest way to get in US dollars. All US$ cash deposits are levied at 20% and the government reimburses the amount in Zimbabwe dollars – at the official rate! This means that in reality the recipient can be losing 10% or more of the deposit in real terms. Exporters are levied 40% of the amount remitted to their forex accounts. It gets better; 3% of all USD cash withdrawals from a bank are taxed. While one can still pay car licence fees and other government levies in the local currency the sense is that it cannot last.
The local Reserve Bank has an idea to shore up the local currency; digital tokens backed by gold. It won’t work – the population’s trust in the government has long since evaporated. There is nothing new about digital currency in Zimbabwe but my staff for one will only be interested in the greenback.
Zimbabwean medical technology can be surprisingly advanced – if you can afford it. This is a Holter ECG recorder.
“Enjoy getting the sensor off your chest” the nurse said and smirked. I didn’t share the humour and suspected this was why she said that shaving my chest before attaching the Holter ECG was unnecessary. At least she had a sense of humour.
I was strongly beginning to suspect the whole exercise was a waste of time and a not inconsiderable amount of money. The specialist physician who’d done the ECG and echo cardiogram had already said that all was normal as far as he could see and that only the MRI angiogram scheduled for the following week might show something. I left $810 poorer.
Last Friday morning at 4 a.m. I had to get up to go to the bathroom. When I got back to bed I asked Marianne what the bandage on my left ankle was for. It has been there four months for an ulcer. Not surprisingly she was concerned. The next three hours were a blank for me but apparently I repeatedly asked about the bandage and looked at my computer programming work and apparently recognized it. I have a vague recollection of asking who my doctor was and where the practice is located (which I have been visiting for years). When we visited the GP later that morning I asked Marianne to come with me just in case I missed something (not that I’d have had a choice!). We emerged 20 minutes later, blood sample taken and with a long list of tests to be done. It looked expensive.
Access to the Zimbabwe medical system requires a subscription to medical insurance and frequently quite large sums of cash as US dollars. The latter is often referred to as a “co-payment” which is another way of saying that “you pay us up front and then claim back from your medical aid/insurance company as we don’t have the patience to deal with their habitually late payments”.
First appointment was with a technician who was working out of his home with an EEG in his spare room/office. He told me that I most certainly had not experienced a Transient Ischemic Attack (TIA) otherwise known as a mini stroke and relieved me of $200. I noticed that he was fond of his dog so forgave him – mostly.
I haven’t seen the test results for the 72 hour Holter ECG yet but I guess they will arrive in due course. The record sheet that I had to fill in detailing any “out of the ordinary” experiences I left blank. There weren’t any.
Yesterday was the turn of a MRI-A (A is for angiogram) in my brain. I had to get there at 7.30 in the morning and forgoing my morning coffee – MRIs have a way of going on for a long time and I suspect the operators would have been unimpressed if I said I needed to use the toilet – I headed out early taking a big mental breath to deal with the morning traffic. It was all a non-event. I arrived early and one of the staff agreed that the traffic was unusually light. The MRI machine was new and made by Canon, the camera manufacturer. It only took 30 minutes then I was off to the Doppler ultra-sound of my neck vessels at another clinic occupied by the same company in another part of town.
They relieved me of $105 (yes, all fees were mentioned in advance and nobody mentioned the local currency – US dollars only) and then after a short wait it was into the examination room. I could just see the screen placed on the opposite wall for my convenience. The technician was not very communicative but did say he could see no problems. The machine made all the right heart noises too.
Now I have to go and see a specialist physician after the long Easter weekend. He will take $100 (he’s seen me before else he would take $200). He has a bit of a dour reputation but was also my physician for the back surgery a year ago and was very kind not charging for hospital visits once he knew I’d been injured in the Rhodesian bush war. “Because of people like you Mr Roberts, people like me got to go to medical school”.
I do have another off-shore medical aid scheme based in South Africa which will reimburse at least some of the costs. However they will only pay what the procedure or tests cost in South Africa which is often considerably less than in Zimbabwe. I’ll have to wait and see.
So what was it that I experienced? My sister-in-law Jane, who lives in the UK and is a better Googler than me, sent me this link which accurately describes it. It’s called TGA or transient global amnesia. It happens, it’s not serious and there’s nothing one can do about it.
On the way back from the gym this afternoon I drove past the local municipal clinic. Once a part of the primary medical care system designed as a first port of call for the average Zimbabwean citizen without access to medical insurance it is now nearly derelict. The gates don’t shut, there was one vehicle parked inside and not a soul to be seen. The last time it was used was for Covid vaccinations and that was sponsored by the WHO and other agencies.
Our weather has become increasingly erratic over the last 15 years or so. I put it down to climate change. Right now we are in the middle of a relatively normal rainy season. That means that the ITCZ (Inter-Tropical Convergence Zone) moves over the country and it rains – quite a lot. Most of our rains happen from mid November to the end of March which in Harare means some 700 to 800mm. The rain can be quite intense – we had 75mm (3 inches) in several hours last week which meant all the rivers around town were up and one of the reservoirs that supplies town was spilling. As a country we’ve had good rain for the last 3 years due to the la Niña effect though it has been quite variable over the country and Harare, which is in a high rainfall area, received less than average. We are due for a drought and I see that there is a el Niño predicted later in the year which is a reliable indicator.
There’s rain around as I type this and yesterday afternoon we had quite a storm with high winds and hail and of course the power went off. It’s still off but we are geared for this eventuality and have solar panels and two lithium batteries to get us through the night. Power outages for other reasons, mainly incompetence and over-use of Lake Kariba as a hydro source, are common so everyone who can has a solar backup plan. Solar water heating makes a lot of sense in our climate so we have three solar heaters, one for us, one for the cottage tenants and one on the domestic employee’s rooms. In the cloudless, hot days of August and September the water can easily boil.
The complete Zimbabwean domestic survival system: visible are two solar water heaters, two solar panel systems and rainwater collection into tanks and a swimming pool.
I see your weather has been erratic too. Mt Washington in the north-east of the USA hit a record -70C a few days back and Europe had an unseasonably warm Christmas. It seems that California has had some heavy rains too; the default weather app on my new iPad is set to the Apple headquarters in Cupertino and they had flood warnings out recently.
Planned, and I use that word loosely, power outages are called “load shedding” in this part of the world. Towards the end of last year it was announced that Lake Kariba, which is our major source of hydro power, had got to it’s minimum level permitted for generation due to over-use by the Zimbabwe power authority and load shedding would become a daily occurrence. We have another major thermal power station at Hwange in the west of the country but it has become a byword for mismanagement and cannot take up the shortfall. We also import a lot of power from Mozambique and South Africa but have managed to get into a lot of debt so the aforementioned countries are fed-up and restricting our supply. South Africa has its own power supply issues (again due to mismanagement by the state-run utility) and is also imposing load shedding but at least it sticks to a schedule. In Zimbabwe the power generally goes off in the suburbs about 6.30 a.m. and comes back on around 10 p.m. Businesses are not exempt either and incur heavy costs due to diesel generators. It’s not unusual for some to run just on night shifts.
Our swimming pool was an early casualty of the power cuts. It’s essential to keep the filter running which the solar panels can do on a sunny day but those are rare in the rainy season so it’s more green than clear these days. Marianne was muttering about the cost of more chemicals to try and clear it. I pointed out that we could always fill it in but it wouldn’t be a cheap procedure and then we’d lose some 70,000 litres of stored water that would be very useful in a drought. We have decided to live with it being more green than not (it is covered over in winter when not in use).
The book you asked about is, I think, “The Shackled Continent” by Robert Guest who was an Africa correspondent for The Economist for a number of years. I found it fascinating and very insightful. Maybe I should read it again.
My business muddles along. I have a lot of outstanding debtors and it’s not so simple as insisting that they pay up front for their orders. I hate having to get nasty but it may eventually come to getting professional debt collectors in as I need to get the money to pay for imports of the coir “peat” raw material that we use to grow the seedlings. I obviously cannot use Zimbabwe dollars but fortunately I did invoice in US dollars which once again is becoming the currency du jour. The government is still trying desperately to keep the local dollar alive but with an official exchange rate of 740 to the US dollar compared with a “parallel”, i.e. street, rate of 1,100 to the dollar, it doesn’t have much of a chance. The local currency is still used, and has to be offered, as a payment method but most outlets make it very attractive to use the US$ by offering massive discounts . Government departments don’t do this so get paid almost entirely in local currency which means they are perpetually in financial difficulties – hence the disastrous state of the power supply, roads, rail links and anything else they are involved in. Am I making sense?
The government is also trying to stifle speculation on the currency markets by lending money at vast interest rates, 110% in November 2022, which makes doing business very difficult and one of the reasons that I use to explain why my business is so flat. The other is the proliferation of competition, often informal, which cut lots of corners allowing them to undercut my prices. Their quality is dismal but people either don’t care or see it as an acceptable consequence of the cheap prices. My prices haven’t changed in four years despite the rising costs of inputs in real (US dollar) terms. It doesn’t make for attractive business. Curiously the construction business is booming with cluster homes (small, single level apartments – several to a property) and other developments being built throughout the suburbs. Quite where the money is coming from I cannot ascertain – but in an economy as moribund as ours it’s almost certainly dirty.
Yes, us Zimbabweans are a resourceful lot and I guess in that respect Diana remained true to her heritage. My workroom/office is full of junk that I cannot throw away just in case I find a use for it in years to come. It must be a hold-over from the days when Zimbabwe was Rhodesia and under sanctions so nearly everything that could be was recycled. It’s probably an attitude of my generation rather than today’s “youngsters” – I drive past a municipal rubbish tip on the way to work and there’s never a shortage of trucks pulling in to offload. I suppose people do make a living out of recycling here though it’s not as fashionable as in the developed world. An elution plant (recycling gold from electronics) has recently been constructed at the former rubbish dump. It’s also not unusual to see carts being pushed around the suburbs and having one’s gate bell being rung by the owners looking for scrap metal.
I guess our “big” news for this year is that we’re going over to the UK in May to attend a rock concert! I’ve never been to one as standing for a long time in rowdy crowds is obviously not possible for me but this is Mike & The Mechanics who are not as popular as they used to be so seating is an option. Time to tick off the bucket list.
Then we are going to stay on the Cote d’Azur with an old girlfriend and her husband for four days. Apparently we’ll be quite close to St Tropez. Marianne is keen to go and see how the ultra-rich live but I may give it a miss. Really looking forward to it and we’re brushing up our rudimentary French in anticipation.
Well, on that positive note I’ll sign off and wish you all the best for this year. Forget the snow shoveling, go skiing and may it be exceptional.
Ciao
Andrew
Note: this is a genuine reply to a friend in Washington State U.S.A. who was a good friend to my sister Diana, and helped look after her in the terminal stage of her cancer three years ago.
Myself, Marianne and Themba (who photo-bombed the moment). Marianne’s wearing a cap and dark glasses because “my hair’s a mess and I haven’t got eye-shadow on”. I am wearing a cap to hide my bald spot.
On Tuesday Marianne asked me if I’d remembered it was my birthday today. I had totally forgotten about it. I won’t but that down to old age just yet but my memory isn’t great and I’ll explain that later.
I got to thinking last night that I was about to turn 63 which is 3 times 21 and what was I doing at 21 and 42? Oddly enough I have quite clear memories of my 21st.
I was in the car park at my university residence when and acquaintance by the nickname of Russian, who was actually of Polish descent, found out and asked me if I’d been kissed yet (he didn’t have to specify a woman). I made some non-committal reply whereupon his girlfriend, Colleen, stepped up and kissed me. It probably was my first kiss! Being a November baby meant that parties clashed with exams so my mother paid for a few of us to go out for dinner later in the year.
November is, of course, an historic month. Armistice Day marking the end of the First World War is on the 11th. This year I noticed a plethora of Facebook posts marking the occasion and reminding readers how we must no forget. I agree totally. Less well known in the wider world is that the Rhodesian government, led by one Ian Douglas Smith (who was a World War 2 fighter pilot in the RAF), made a Unilateral Declaration of Independence (UDI) from British rule on the 11th of November 1965 making Southern Rhodesia just Rhodesia which became Zimbabwe in 1980. International sanctions swiftly followed and we were on our own (with support from South Africa and Portugal) until 1980. Rhodesians were capable and highly industrious and for a while the country flourished.
Various Facebook sites on the 11th were swamped with ex-Rhodesians reminding me of this. They seem to have forgotten that by the end of the ensuing bush war in December 1979 we had long lost the support of Portugal and South Africa and came very close to a battle for the capital city, Salisbury (now Harare) which would have been a bloodbath. The following elections got us Robert Mugabe as a ruthless head-of-state and we all know how that eventually turned out. Thousands of people lost their lives in the bush war, my father included as an innocent civlilian, and I was partially paralysed in a military action. Really, did those who concocted the UDI not see the train wreck coming? What were they thinking? The UDI was arguably the worst decision in our history.
What was I doing 21 years ago? In 2001 the Mugabe regime was on the rampage, chasing white commercial farmers off their land, frequently destructively. Often farms were looted and abandoned of their agriculture, plunging the currency into a hyper-inflationary period that culminated in 100 trillion Zimbabwe dollar notes and inflation in October 2008 estimated at 4.3 million percent. Those who could left the country, New Zealand was particularly quick to see the potential of qualified Zimbabweans and welcomed them en masse. I do know that in 2001 I had a lot more disposable cash than I do know and I did around that time have a party for friends in a local restaurant. It was great fun. Maybe we just didn’t care about the impending financial disaster or more likely we just chose to ignore it for the night. I certainly wasn’t concerned about getting to 63 – that was far away.
Now 63 is here and I’m not impressed. But before I go down the route of losses and gains I owe an explanation of my terrible short-term memory. In April this year I had a lower back operation to repair and stabilize various vertebrae that had deteriorated as a consequence of the bullet that tore through that region in April 1979 (detailed description in Reflections on the first half). The operation was successful and the surgeon said the spine was not as messy as he was expecting but the anaesthetic has had lasting consequences on my memory. It even has a name; Post Operative Cognitive Dysfunction (POCD). While its occurrence in people my age is uncommon I appear to have been unlucky – I’ve had more than a few general anaesthetics in my life and none have had this effect. Effects range from forgetting conversations I’ve just had to full-blown bouts where I cannot control my thought processes and I cannot perceive the world around me. The POCD may last in younger people up to 6 months but in older people there can be permanent effects. Recently I decided to do something about this and give my brain some work to do.
When I first took over my business I quickly vowed to get rid of the pile of paper that accumulated on my desk at the end of each month and decided to write my own software package to deal with the administration side of the business. I duly went on a course to learn Visual Basic (VB) and got to work. It took several years but it does the job now. While these projects are never finished I more recently decided to write a wages package that my senior foreman could use and free me up from tedious and mistake ridden Excel spreadsheets. It works well but being written in an old version of VB has issues running on my relatively new laptop. So I rewrote it in a newer, and quite different version. On getting out of hospital I needed something to do whilst on bed rest so wrote a cash notes calculator for the old version. Being rather pleased with they way it worked I decided to write one in the new version, only to find to my complete amazement (and disquiet) that I’d already done it before going into hospital. I had zero recollection of writing the app or the code itself. So now I’m rewriting the original accounting software to give my brain exercise. It will be a long project.
My mobility has taken a considerable knock over the years. At university I used to cycle all around the campus and when I left I went on a cycle tour of France, Switzerland and Germany. At 42 I still cycled around the farm where I rented a cottage. This all came to an end, albeit slowly, when a South African surgeon did a less than stellar job of fixing the neck I’d fractured as a teen. Back in 2014, when I’d started tripping over my own feet, I winced mentally when the surgeon who finally fixed the mess said “Oh, that old man” when I told him who’d done the original surgery. Little did I know at the time there was a specialist orthopaedic spine unit which is part of the Vincent Pallotti Hospital in Cape Town. I have not been on a bicycle since. So the message to the reader is: if you really HAVE to go under the knife, DO YOUR HOMEWORK! When asking a local doctor for advice on who to see about the neck operation I accepted at face value what he told me. It was an expensive mistake.
So, in the last 21 years I have lost: hair (thanks to my mother’s genetics), mobility (already explained), hand and upper body strength also as part of the aforementioned, hearing (thanks to the military) for which I wear hearing aids – I love ’em and can enjoy music again and of course my eyesight is not what it used to be. I do wear bifocal glasses but only for flying a drone. I’ve had lifelong short sight for which I’ve variously worn glasses, then I had a flirtation with contact lenses and now I’m back to glasses which I take off for close work.
Gains: toys, rather a lot! Some years ago when it became apparent that paragliding was a dying sport in Zimbabwe I took up aero-modelling. It’s definitely second prize but at least I get to fly something. So now I have several drones (I took the photograph at the top of the page with one) and some fixed-wing models too. I particularly like electric gliders. For the real flight experience I have a paramotor (that’s a paraglider with a petrol driven motor) but I don’t get to fly that much as I need assistance with the setting up. Of course I’ve gained a marvelous wife which was something I never expected to happen at 21 or even 42. Nothing could have been further from my mind at 21 and well, at 42 I thought I’d be a batchelor for the rest of my days. Fortunately I was wrong.
As for the next 21 years, well, it’s best not to think about it too much. Maybe I won’t get there, after all, 84 will be getting on a bit. Perhaps the end will come like the proverbial “thief in the night”, but sadly few of us will be that lucky.
I won’t pretend the last 21 years have passed quickly but I don’t have a lot of memories to look back on. I guess that it’s time to make a few now so next May Marianne and I are going with a group of friends to a rock concert in Birmingham, U.K. It’s our first ever and hopefully it will be good. Mike & The Mechanics are by no means a current band but we still like their music.
On Tuesday after Marianne reminded me it was my birthday on the 17th she went shopping. She complained that she couldn’t find me a present; I really wasn’t concerned – I think presents should be bought when one sees them, not necessarily for an occasion. It did occur to me to get myself a present, perhaps a rescue dog from one of the over-flowing charities. But I wouldn’t have been able to choose just one and would like to have gone for an older dog. Old dogs are special so maybe I’ll sponsor one instead.
Export fruit that didn’t get taxed (bought for cash off a neighbour)
Zimbabwe’s dollar is crumbling for the second time. It last fell off the charts in 2008 so you’d think our finance ministry would know better. Apparently not. Inflation in local dollar terms is back in triple digits and, like the rest of the world, inflation in real money is also a problem – but one we can live with. The real problem is tax.
Given the problem with the local currency the reader would be correct to assume that those who can export products to bring in hard currency would do so (the breakfast bowl of fruit above were probably not export grade but they were delicious!). However, keeping the fruits of one’s labour is a bit more difficult. The government takes 40% of these export earnings and pays back the exporter in Zimbabwe dollars at the official exchange rate. As things stand the official exchange rate is around 360 Zimbabwe dollars to one US dollar whereas the unofficial rate, the one nearly everyone uses to price what you see in the shops, is about 650:1. So exporters are losing about 20% of what they get in as hard currency. If they then use this hard currency in an electronic transfer the receiver is also subject to handing over a portion, in this case 20%, to the government at the official rate.
One doesn’t have to be an exporter to have a Foreign Currency Account (FCA). My company holds one and I have received US dollars into it for some time now from a company for whom I grow gum tree seedlings which will, when mature, be cut for firewood for curing tobacco. They get US dollars in the form of a levy from tobacco exports. Yes, I can even go to the bank and draw out the money as cash though again there is a 3% levy on this which the government takes. Naturally people prefer cash deals which are not then banked though there is only so much one can “hide under the mattress”. Safe deposit boxes are a preferred option to the former but at the moment they are at a premium.
These FCAs also existed under the Mugabe regime but on two occasions during our hyper-inflationary period of the local currency they were raided by the central bank and the owners were paid out in Zimbabwe dollars which very quickly became worthless. The inflation in October 2008 was estimated at 4.3 million percent for that month. This is not so long ago that people have forgotten and there is a steady queue of customers in my local bank withdrawing hard cash, risks and levies notwithstanding.
Of course not all transactions require US dollars. The local currency is still used and indeed, the government has stipulated that customers must be allowed to use it if they want. Of course everybody makes it very attractive to pay in US dollars by offering a rate heavily stacked against the Zimbabwe dollar. One hardware outlet is well known for offering a discount on top of this, so they can say to any inquisitive official that they are using the official rate, but only if you actually ask the checkout person.
VAT is not particularly high at 14.5%. However, transactions over 500 Zimbabwe dollars (less than a US dollar) attract a tax of 2%. A number of transaction types are not taxed. These include tax payments (what, no tax on tax?), wages, insurance payments, medical aid payments and various others. One bank I deal with has a comprehensive list of non-taxable transactions, the other has a very short list for no reason that I can discern.
The Zimbabwe banking system is surprisingly sophisticated in some respects and dismal in others. Everything can be paid for online, taxes, transfers, insurance, social security. It doesn’t all work very well though and as a part-time programmer I am constantly irritated by lazy design and weak code. It is even possible to buy car licences online and the government can see from a database that one’s vehicle insurance is up to date. The paper discs for display on the vehicle are then delivered by courier to one’s address which rather spoils the efficiency.
Like nearly everywhere else in the world we have been affected by the Ukraine/Russia war. At the beginning of the year fuel was around US$1.25 per litre (it is ONLY available in US dollars!). Now diesel is $1.87 per litre and about 40% of that is government taxes and levies. No small wonder that inflation is running rampant. I saw a Reserve Bank announcement last week that the Zimbabwe dollar lending rate had been increased to 200% in an attempt to block speculative borrowing. It will have little effect – you read that here.
I have been paying my staff in a mix of local and US dollars for some time now. This month they approached me to increase the US dollar proportion. It wasn’t difficult to say yes given that my local currency accounts will hardly cover my own salary let alone their wage. Clearly they don’t have faith in the local dollar, unlike the President who is insisting it’s here to stay. For those with a bit of time on their hands try typing this into Google: “zimbabwe multi currency system to stay herald” (exclude the quotes). It’s farcical. Note that The Herald is the government-owned newspaper, so it parrots the state line.
Anyone anywhere who has tried to import materiel knows that paperwork is essential. Where you are depends on how tedious it all is. In Zimbabwe three import permits are required for plant material; a Plant Import Permit, a Control of Goods Act Import Permit and a National Biocontrol Authority Import Permit. So when I need to import the coir pith (coco peat is the trade name) that we use in the nursery as a propagation medium, I am filled with a sense of dread and resignation. It can be a tedious process, really tedious.
Compounding the issue is the Covid crisis. I have had an order in with my supplier in India for eight months now. Finally he said that he could source a container but it would have to come in via Durban in South Africa, not the shorter land route via Beira in Mozambique. I have had to use this route once before in 2014 so went back through my file; the C & F (carriage and freight) price to Durban had increased 200%. I don’t know how much of this was the container but I do know that thanks to Covid prices of containers have skyrocketed. There was nothing to be done about that; the imported medium is much better quality than the local medium, so I got on with the application process.
The Ministry of Agriculture building where two of the permits are to be applied for is quite close to where I live and fortunately well out of the CBD. It’s also had quite a makeover since I was last there just over a year ago for another purpose. The gardens have been spruced up and the parking lot and entry and exit made less hazardous off the busy Borrowdale Road that passes it. I suppose it’s a small expense compared with fixing up the disastrous state of the roads and public hospitals but I do feel it shows where the interest in spending money lies.
In order to start the process I had to provide a number of other documents. Several were company registration documents and easy to get copies of them from the accounting firm where they are kept. Another was proof of membership of the Agricultural Marketing Association (AMA) and despite the name I’ve yet to ascertain exactly what it does apart from take US$350 per year off me. I did notice that they had gone some way towards making applications entirely online.
They young man in the AMA office was pleasant and chatty. He took the completed forms off me and put them through the very large scanner/copier/printer in the corner of the room. “We are making every effort to go paperless” he commented. When I pointed out that it was a very large and new printer he did admit that it was a bit ironic. He was well informed and actually did know what coir pith was and what it was used for. The actual registering online took a bit of tweaking over the phone but I’ll admit to being impressed that it actually does work even it it’s not very intuitive. Zimbabwe is progressing in very select areas!
The permit application process at the Ministry of Agriculture was also surprisingly painless. The Plant Import Permit was ready within three working days and the Control of Goods Act permit two days after that. I didn’t have to queue long either! The Biocontrol Permit needs a declaration from the coir pith supplier but that can only be had once the coir is packed in the container and ready to be shipped. Apparently I can also apply for that entirely online. We’ll see. Of course fuel prices have increased markedly in the last month which was after I got the original quote so I haven’t dared to inquire what the new transport costs from Durban will be.
Some of the stands at the ART field day
The long reach of the Ukraine – Russia war has got to Zimbabwean agriculture. At the annual ART (Agricultural Research Trust) Farm open day, held close to my nursery, the Deputy Minister of Agriculture exhorted the audience to grow lots of wheat this coming season. It seems that we import nearly 50% of our wheat requirement, mainly from Russia. No doubt this influenced Zimbabwe’s abstention at the UN meeting on the Russian invasion, as did Russia’s support of Joshua Nkomo’s ZIPRA faction in Rhodesia/Zimbabwe’s civil war that culminated in Zimbabwe independence in 1980. It was probably not lost on the audience that we wouldn’t be so dependent on wheat imports in the first place if the government would just get on with making land tenure a reality so that farmers would have collateral against which to borrow. Banks have made it clear that loans will not be forthcoming any other way. I guess there will be a bread shortage later this year.
I turned around to see her admiring a large bunch of mainly red roses; she was positively purring.
“I got them from John” she added.
“Because you are my guardian angels” enthused John as a way of explanation. “Thank you for thinking of me”.
I told him that we had thought of him because he does good work which was quite true. He has cut out a number of diseased trees for us over the past five years and always does a good job and is reasonably priced to boot. And of course he is a gentleman too. So I had to think of a way to “get him back” so to speak. More about that later.
We turned out attention to the avocado tree in question. It had grown very big so the only way to get avocados off it was to wait for them to fall. Avocados don’t do falling well, especially from eight metres, and whilst they were not bad as humble grown-from-a-seed fruit of this type are, there are definitely better around. The plan was to cut the tree back to three stems, wait for new shoots to grow out, and then graft on several known cultivars that I like and get a tree that can produce for some 6 months or more.
I showed John where I wanted the main stems cut and with yet more thank yous for thinking of him he got to work.
Our president, E. D. Mnangagwa, or just ED as Zimbabweans know him, is not much like John. He has been at the COP 26 climate conference in Glasgow. Not one for scrimping on costs or being environmentally conscientious he took along 100 sycophants in a specially chartered jet. Technocrats were left behind in favour of party buddies. Judging by the videos on social media they know how to party too.
An address by ED to a nearly empty auditorium was picked up by the press, and whilst not that unusual at that time slot, plenty of mileage was got. Apparently ED has committed us to a 40% reduction in greenhouse gas emissions by 2030. Details on how this would be done were omitted. One social media wag commented that since the land invasions of the 2000s the destruction of the economy has already achieved the 40% reduction target – we just have to be careful the economy doesn’t grow. That shouldn’t be too difficult – the current regime is only interested in self-enrichment. He also made claims that the sanctions to which he and other party bigwigs are subjected are stifling Zimbabwe’s economy and hamstringing our economy. One of his sons recently imported, by air, a Rolls Royce car valued at some US$500,000.
The local Zimbabwe dollar continues to lose traction in the economy. ED has buckled to the war veterans’ (loosely defined as those who supported the nationalists in the civil war of the 70s) demands that they get their pensions paid in US dollars. The civil servants saw this as an opportunity and made the same demand which was flatly refused. In other countries it would be unwise to anger one’s voter base but in Zimbabwe elections are predetermined so it’s not a big issue.
Our gardener comes from the rural north of the country and he says that there the US dollar holds sway – don’t bother offering local dollars. My senior foreman comes from the east and there the local dollar is still acceptable in some situations. While it’s not illegal to price in US dollars it is illegal to convert it to the local equivalent at anything but the official rate which is determined by the central bank’s (Reserve Bank of Zimbabwe) daily auction rate. Senior figures at a local company were charged for this infraction and I have noticed that signs claiming the rate of exchange used in their outlets became prominently displayed. Everyone else is ignoring it and the black market rate continues to climb. It’s now around 200 local dollars to 1 US dollar whereas the official rate is 105.
We paid Gentleman John in US dollars because we do like him and he does a good job, this one was no exception. My revenge on him giving him Marianne roses was to give him a bar of Lindt chocolate for his wife who I hoped would to ask why. I haven’t heard back.
I watched Warren closely, fascinated. He took several careful steps intently watching the mostly full water bottle balanced on his left hand. It toppled and he caught it in his right hand. He turned around, retraced his steps back behind the wall and repeated the procedure. He scuffed a mark in the dry lawn with his boot and walked off at 90 degrees then walked back over the spot. The bottle fell again. He was divining for water in our garden.
I am no believer in witchcraft but Warren backs up his dousing with some science and he’d successfully sited a borehole for me at my work, just out of town, so we’d got him in to our garden to see if he could repeat the success.
A couple of months ago one of the two boreholes that my nursery relies on, started to give problems. It has been fine for the 22 years that I have been there so I was more than a bit concerned. I knew it was a water problem because the run-dry electronic protection system kept tripping. I responded by reducing the flow of the water to a measly 1,300 litres an hour. It can run for a day but at night the security guards, who are hopefully not sleeping, report that the ammeter on the switchboard by my office keeps dropping to zero indicating the pump has turned off.
The area where my work is situated is not great for ground water and there are no streams nearby. I rent the property and the landlords sank five boreholes to around 70m each when the land was bought in the early 1980s. One is useless and I have to share the other four with the other occupants who include another nursery, a rose nursery and a small domestic property. The prospects for new siting of holes are limited. Nevertheless, Gill, my landlady agreed to finance a new hole but I would have to pay for the siting and equipment (the latter would remain mine to take with me if or when I leave). Several water diviners, or dousers as they are sometimes known, were contacted and brought in. There was no agreement on where the water may lie. Only one, Warren, used a scientific backup (a machine based on electromagnetism) to what his water bottle told him and both indicated a likely source, so we called in the borehole drilling company that he recommends.
Electromagnetic profile of the rock at Emerald Seedlings. A break, or potential water site, is indicated at point 7 by the V shape. The colours are not indicative of water presence.
Payment was made up front and withing a couple of days they had arrived. Watching boreholes being drilled can be a stressful experience but I wasn’t paying and it was the first one I’d seen up close. The drilling mechanism is mounted on one large truck, about seven tonnes, and the compressor that powers it is on another. There is a lot of noise and dust.
The drilling rig in action.
Each pipe section that makes up the drilling column is six metres in length and mounted eight to a rotating carousel. It didn’t take long to drill to the 60 m that Warren had advised and water was found at 38m, almost exactly where the chart above indicates. It was not exactly a gusher at an estimated 1,000 litres per hour.
Material samples from the hole taken at 1 m depths starting top right to bottom left.
The actual process took only three hours as 60m is not a deep hole by today’s standards. In fact the hole at our house in the suburbs only has a 40m hole which was probably standard for the 1970s and quite adequate at the time when boreholes were unusual and municipal water flowed in the pipes. It never recovered from last season’s poor rainfall and now will only pump for an hour or less before emptying. One of the other diviners who came to my work was quite garrulous and told me he’d recently found and drilled (he had his own rig, or so he said) a “gusher” at 200m. It’s the first time I’ve heard of such a deep hole in the urban areas but 100m is pretty much the norm.
The foreman for the drilling company handed over the drilling report which clearly stated that the hole was an “excellent yielder”‘ and suitable for extracting water. I was surprised that 1,000 litres per hour was considered an “excellent” yielder and gave the drilling company a call. The manager explained that for a domestic hole, which is mostly what the company does, a 1,000 litres per hour was considered good but they did tend to be conservative in order not to disappoint customers and that we should get on and use it as it could take a season of pumping for a hole to unblock all the cracks and reach its full potential. It has taken a few weeks to get all the ditches dug for the pipes and the switchgear put in a box that is reasonably theft-proof, so it will all be turned on in the next couple of days and the moment of truth will be realized.
Warren applying science to his “witchcraft” in our garden.
Meanwhile Warren has submitted his report on the site he found in our garden and is reasonably positive that it’s a good site. All dousers make a point of saying on their report that it’s not an exact science and a good result is not guaranteed. Warren has more faith in his bottle than the electronics and admits that he doesn’t really know how the latter works. He keeps up to date with technology and recently contacted a European company that was advertising a machine for divining. Even at a cool 150,000 euros it was not guaranteed to find water. There just doesn’t seem to be the tech out there to find water accurately.
The profile from our garden. The desired break in the rock layers can be seen at point 2.
I asked the same drilling company for a quote to drill to 100m. They came back with US$4,100 which included the casing but not anything else. It’s not a small sum of money but if we find water it will substantially add to the value of the property and will take two years to cover the cost of the water we are now buying in for domestic purposes. We do occasionally get municipal water but it’s not reliable and goes into the swimming pool and then is pumped onto the garden to keep selected areas alive through the dry season. We certainly wouldn’t entertain drinking it as it comes from the heavily polluted Lake Chivero into which much of Harare’s storm water, industrial waste and sewage drains. The human excrement side of the pollution can be dealt with but not the industrial. Well, not in Zimbabwe where the water treatment works frequently runs out of cash to buy the aluminium sulphate used to settle the particles suspended in the water.
The suburb of Harare in which we live is known as Mount Pleasant. There is no “mount” of which I’m aware and the area is not known for a profusion of ground water. However the road along which I drive to work has some verdant verges that are profusely watered, so some properties do have good water. I’ve named it Irrigation Alley and it’s not unusual to see upwards of eight sprinklers (yes I did count them) watering the verges and the road. In fact this morning there were 14 working along a 1.3km stretch of road.
Marianne is on several neighbourhood WhatsApp groups that discuss these sort of things and appeals to irrigators of verges and roads to conserve water so the rest of us with marginal boreholes, or none at all, don’t have to buy so much water. Their response is “it’s my water and I’ll do as I like with it”. That’s technically true as all of us with boreholes pay an annual licence fee that allows unrestricted usage. Community spirit in this respect is in short supply.
After much dithering we have decided to go ahead with the borehole in the garden. The money has been paid and the drillers have made an inspection and think that the site is a good one. They will be back in due course and I’m not sure if I will stay around to watch. Of course it will make not a jot of difference if I do watch but there’s a lot riding on this.
At work we finished the electrics on the new borehole today and tomorrow we should be able to get the pumping gear down the hole and see if we have something useful or not. No doubt the irrigators of Irrigation Alley will be watering the road and the verges as normal.
Yes, that really is “weed” on which the stinkbug is sitting. I wouldn’t recommend smoking it, the weed that is, as it’s industrial grade cannabis which is grown for the fibre content and has no narcotic effect. Stinkbugs should absolutely not be ingested – they taste as bad as they smell, which is vile.
The Zimbabwe government has been pushing the various cannabis crops (hemp fibre, CBD oil and THC) as potential export crops and Stewart and I were at the Tobacco Research Board (TRB) to see what research they’d been doing. Stewart works part time for the Commercial Farmers’ Union and was trying to persuade me to write a growing guide, I knew how little I knew and was resisting but was still interested in finding out more about the crop.
The lead researcher was a young, dynamic fellow by the name of Munyaradzi or just Munya for short. He was passionate and knowledgeable about the crop. He quickly explained that they were just looking at the industrial or hemp quality cannabis at the TRB – the CBD oil and THC varieties, which have up to 0.3% THC and more than 0.3% THC respectively required onerous security which was not feasible. Industrial cannabis merely requires a fence and lockable gate so they were interested in getting small-scale growers into growing the crop.
The TRB had imported a number of different cultivars of the industrial hemp from origins as diverse as China, France and the USA. Some were clearly not suited to the relatively short Zimbabwean days though Munya did admit that it was early days and the seed had only been sown in January. Extending the day length with lights is practiced by the growers of the CBD and THC strains which keeps the crop from flowering too early. He told us that they’d approached the CID (Criminal Investigation Department) of the police to see if they could visit areas in the west of Zimbabwe where the THC version of cannabis has been grown illegally for many years to see if they had any selections that may be useful as he felt they’d certainly be climate adapted. Apparently breeding out the THC would not be difficult and yes, the police had approved the idea in principle.
Industrial hemp is quite widely used in the automotive and other industries that required cladding but the real money, Munya said, is in the CBD oil and THC. Unsurprisingly the buyers require the product to be GMP certified which requires stringent quality controls and regular inspections by a certified inspector which Zimbabwe doesn’t have. If it’s to be used for medicinal purposes the crop also has to be grown organically. A neighbour to the TRB who is growing the CBD cultivars has had to destroy his entire product so far as he cannot get it certified. Currently there are not a lot of major players in the industry but Munya predicted that it was going to get going within a few years.
One could be forgiven for thinking that the Zimbabwe government has other ideas. On Thursday this week they introduced a bill (SI 127 of 2021) forbidding anyone from trading in Zimbabwe dollars at anything other than the official rate of 84:1. The legislation has been around for some time but was not enforced. Now apparently it will be, with punitive fines for those who choose to ignore it. Most businesses have been pricing in US dollars and then multiplying by around 125 to get the Zimbabwe dollar price. This makes it attractive to pay in US and then more imports can be sourced. There is a government “auction” in place where one can bid for US dollars but the price is fixed, so it’s not really an auction at all, and there’s no guarantee of getting the hard currency. That there has to be an “auction” at all is indicative of just how short hard currency is. Forcing businesses to trade at the official rate is only going to make goods very expensive in US dollar terms so people will use Zimbabwe dollars and imported goods (most things) will become scarce. This graphic from a local asset management company says it concisely. “Decline in economic activity, stagnation, loss of confidence in local currency, and increased probability of second collapse of local currency”. Yes, we have been here before.
Zimbabwe Absurdity 
Taxed if you do, taxed if you don’t
26 08 2023It had to be a mistake, I couldn’t possibly owe the tax department (ZIMRA – Zimbabwe Revenue Authority) that amount. Even if I converted it to US dollars it would amount to an impossible figure – about 17,500 at the unofficial rate and 23,000 at the bank rate. I checked the email address – it was from a person with whom I’ve corresponded over the years. Then there was the wording; FINAL DEMAND. Where were the other demands? I did what any sensible person would have done and contacted my bookkeeper in a state of panic.
Alison was more than a bit puzzled but told me she couldn’t do anything without seeing how they’d got the figures. “Your are entitled to see what’s going on” she said. “Ask them for the ledger”
The ledger was duly sent and the waters immediately became a lot murkier. It stated the figures were in US dollars and the numbers, if the currency was US dollars, were impossible. I sent it on to Alison. It was a while before she came back to me by which time my imagination had run riot. What if I really did owe 105 million dollars? I would have to buy it on the open market with my US dollars and would be left with no operating capital and nothing with which to pay wages. The company would be unlikely to survive.
Alison assured me that the figures on the ledger were Zimbabwe dollars and I probably did owe the 3,835,807 listed. She had no idea where the 105 million came from. “Ask them” she said. So I did.
The reply was abrupt; the 105 million was to be ignored (RTGS is another way of saying Zimbabwe dollars). The amount on the ledger was also incorrect as it didn’t account for some US$550 that I’d paid in presumptive tax (they are called Quarterly Payment Due or just QPD) which would have reduced the amount owed close to zero.
I speculated to Marianne that it was all just a bit of psychological bullying to get me to pay attention to the outstanding amount, then two days ago I bumped into Gary whose wife had had a strikingly similar experience.
Gary works for a seed company that occasionally uses my nursery to grow seedlings for various trials. They have a trial on ART Farm which is a neighbour to my nursery and I sometimes use it access my nursery so as to avoid the appalling direct road and take in a bit of soothing farm scenery on the way. Gary was having a look at one of their trials near the road so I stopped to chat.
We discussed various things then I related my experience with the tax authority. He said that Clare, his wife who works as a bookkeeper for a local church, had received a final letter of demand for payment from ZIMRA for an impossible amount about three months ago. She replied that as a church they were not liable for tax and any money made was given away to various charities and nothing more was heard. He agreed with me that as the government was desperate for money it was likely endorsing ZIMRA’s intimidation tactics to get in whatever money they could, maybe they were even giving a commission.
On getting to work I related the story to my senior foremen. They were decidedly cynical. “They are all on the take” opined Chingedzerai. “Yes”, added Fabian, “they see the rest of the government officials stealing and think that they should have some of the pie too. They see what they can bully you into paying and then split the extra between themselves”. It was obvious that they thought I was being naïve.
Marianne had been doing some questioning of her own and posted my problem on the local community WhatsApp group. Someone had responded with a name and phone number of a senior official at ZIMRA whom he thought would be able to help. I gave him a call and related my problem and asked if it was official ZIMRA policy to send out threatening demands based on nothing much at all. His indifference was striking; I should send him a copy of all the correspondence and documents and he’d forward it to the relevant manager. I duly sent him the copies but I am not expecting a reply.
It’s no secret that Zimbabwe is in deep financial trouble. Mismanagement, corruption and incompetence have seen our GDP plunge after the Mnangagwa government took power in a coup back in 2017.
At the time it was welcomed by the majority of the population who were relieved to be rid of the much hated and feared Mugabe regime but it was not long before the new government of E D Mnangagwa revealed its true colours of repression and corruption. Chingedzerai reminded me that the current administration has never bothered to investigate the estimated US$15 billion worth of diamonds that went unaccounted for from the Chiadzwa diamond fields in the east of the country in the latter part of the Mugabe era. More recently there was the gold smuggling exposé by al Jazeera that showed how top Zimbabwean officials were, with the highest approval, smuggling gold out of Zimbabwe and laundering the resulting cash. Indeed, for a country that is struggling financially, there is an eye-opening amount of property development around town. In the past this would have attracted the attention of ZIMRA who would have demanded to see the accounts of owners of expensive properties and made to account for the development. Now it’s easier, and more personally profitable, to send out threatening letters.
I paid wages on Tuesday. We chose the date years ago when getting cash from the bank at the end of the month meant enduring long queues and not getting the desired breakdown. Chingedzerai had heard the income tax limits had been increased and asked me to check on the internet before he entered the attendance and overtime figures on the computer. I was fairly sure it was only the Zimbabwe dollar tables that had changed but checked on the US dollar tables anyway (I have been paying my staff in the latter currency since August last year).
In Zimbabwe salaries are taxed monthly and the system is known by its acronym PAYE; Pay As You Earn. The rates are iniquitous. Wages are taxed from US$100 per month upwards! Given that the minimum agricultural wage starts at US$60 before any of the required allowances, most of my staff are taxed. Some do get age exemptions but the rest of them have to endure.
Such is the government’s demand for money that it has taken to taxing money transfers at 2% per transfer. It goes without saying that most transactions are cash though it’s not always possible. The government used to tax cash withdrawals from banks but gave up when it became evident that people were simply not depositing cash in order to avoid paying the tax.
Given the high cost of living and taxation in Zimbabwe one would assume that the majority of the population would be keen for a change of government. Indeed, given that we had a general and presidential election on Wednesday, one could be forgiven for thinking it imminent. With the recent exception of Zambia, southern African is not known for changing its governments and Zimbabwe is not about to become an exception too.
My foremen and I were all in agreement on this; the incumbent ZANU-PF party, which has maintained its grip on power since 1980 by means mostly foul, will certainly cheat its way to victory; only the level of the fiddle is not known. So far it’s been “limited” to delaying delivering voting papers to polling stations in regions known to be opposition strongholds, sending voters to polling stations where they found they weren’t registered, making sure one couldn’t check the online registration database and of course blatant intimidation. Few, if any, believe the logistical problems to be anything but deliberate. We remain cynical.
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Tags: corruption, general election, tax, ZIMRA
Categories : Blogroll, Economics, Social commentary