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Conrad Mwanawashe, Gweru Bureau
BUSINESS says the government should urgently clean up the Labour Act Amendment No 5 which came into effect last year, and address issues relating to the plethora of taxes business is faced with.
A business conference organised by the Confederation of Zimbabwe Industry Midlands Chapter yesterday raised concern at the proposed health levy on workers, saying it would be unfair for the few workers in formal employment to carry the majority of the unemployed population under the National Health Insurance Scheme.
The conference interrogated the role of the Labour Law Advisory Council, update on the establishment of the Zimbabwe National Productivity Institute and the proposed National Health Scheme.
Of particular concern to the business sector is the additional tax burden companies or workers may have to carry if the proposed National Health Scheme is introduced.
The idea of a National Health Insurance Scheme is noble and carries industry support, however, under the right environment.
With the government and workers financially under pressure the only way would be for business to fund the NHIS but this would go against the noble idea of improving the ease of doing business environment and increase the cost of doing business,” said SinoZim general manager Derrick Moyo, who was the chairman of the conference.
Moyo said with the unemployment rate in Zimbabwe high, it would be unfair for the few workers in formal employment to fund the NHIS.
“The unemployment rate in Zimbabwe is very high at 94 percent according to the 2016 CIA factbook. If the formally employed workers are expected to fund the NHIS it would be a huge and unfair burden on this category of Zimbabweans. Six percent supporting the 94 percent unemployed population in the country,” he said.
The government amended the Labour Act to halt the arbitrary dismissal of workers on three months notice.
Another industrialist and panelist at the conference said the taxes have the effect of undermining growth of industry.
Apart from raising concern on the heavy tax burden, business raised concern with ambiguities associated with the Labour Act, particularly the amendment passed last year. They said the law is not clear on how to treat workers on disciplinary action and how to deal with pending labour court cases.
Another issue that was topical referred to the cumbersome dispute resolution process. Business called on government to streamline that process.
derick.khumalo