Employers want Covid-19 deductible tax

Leonard Ncube , Victoria Falls Reporter
GOVERNMENT should consider reviewing its policy to facilitate Covid-19 deductible taxation so as to cushion businesses against the adverse impact of the pandemic, employers have said.

A tax deduction is a deduction that lowers a person’s or an organisation’s tax liability by lowering their taxable income.

The need to scale-up Covid-19 mitigation and ensuring maximum protection of workers and continued business operations came under spotlight during the Tripartite Negotiating Forum (TNF) retreat here last week.

In its submission, the Employers Confederation of Zimbabwe (Emcoz) said policy review was necessary in effective management of workplace under the new normal caused by Covid-19-induced lockdowns.

Emcoz vice-president, Mr Farai Jabulani Dube, said there was a need for shared value system and vision for win-win solutions, with consideration for tax deductible Covid-19 fund as one of the major interventions.

“As Emcoz we regard social dialogue as a central issue for socio-economic development in Zimbabwe,” he said.

“The new normal brought by Covid-19 lockdowns ushered in challenges to do with remuneration, supervision, motivations, skills, digitisation, business continuity, capacity utilisation and productivity.

“These challenges call for new policies and ways of managing our workplaces hence the need for more dialogue among ourselves as social partners.

“We appeal for Covid-19 contributions to be treated as tax deductible. The Ministry of Finance and Economic Development is on record as saying all contributions for fighting Covid-19 are tax deductible hence our plea,” said Mr Dube.

He said companies were facing difficulties in testing workers for Covid-19 infections due to high costs associated with testing done by private laboratories who often demand between US$25 and US$30 per employee.

Mr Dube said there was a need for more traction in the TNF and inclusiveness as a critical factor, and urged the Government to consult social partners before policy announcements and implementation.

“We humbly request the authorities to assist the private sector to procure PCR and rapid antigen testing kits at affordable low cost,” said Mr Dube.

“Business is concerned about some sections of the society not adhering to Covid-19 regulations at a time when every precautionary measure is needed to help business recover.”

He encouraged all workers to vaccinate, stressing the need to embrace and invest in technology in light of the impact of the pandemic in the world of work.

Mr Dube said social dialogue has been instrumental in the creation of a stimulus package and social safety nets for the benefit of businesses and communities in distress.

“Strengthening social dialogue is the way to go and will not only promote peace and stability but also spur economic growth and development, particularly with increased participation and consensus building,” he said.

“Social dialogue is an effective vehicle we can all use to achieve decent work in the formal and informal sectors.”

Mr Dube said social partners should continuously evaluate the effectiveness of policies and systems in order to honestly come up with proper solutions.

The TNF, established in 1998 and enacted in 2019, is Zimbabwe’s social dialogue platform bringing together Government, business and labour to negotiate key socio-economic matters affecting all stakeholders.

The social partners met in Victoria Falls for the first time in 10 years following enactment of the TNF Act by President Mnangagwa in June 2019. – @ncubeleon.