The introduction of the two percent transfer tax is only one leg of a legion of measures that will be introduced by government to contain Zimbabwe’s budget deficit, Finance and Economic Development Minister, Mthuli Ncube has warned.
Ncube said the measures which includes cutting down the civil service wage bill among others will be announced on 22 November.
“Treasury will cut the civil service wage bill, which stands at $300 million per month, by $60 million.I am confident that we will make a lot of progress, you will see the measures in our Budget, and (the) tentative date is 22 November,” Ncube said.
He added: “Government wages are about $300 million a month, so if we are reducing that from 70 to 50 percent (of expenditure), so we will save about $50 million to $60 million, which over time is what we would want to save on a monthly basis,this is the trajectory over the next three years.”
Ncube has insisted that economic structural reforms were unavoidable.