Teachers hammer Mthuli Ncube over forex duty on vehicles

'Why are they refusing to accept the money that they are paying us in?'

Teachers fury ... The government is charging foreign currency on vehicle imports

HARARE – Teachers are furious with Finance Minister Mthuli Ncube after he used his 2019 budget statement on Thursday to announce that duty on vehicles will now be paid in foreign currency, starting November 3.

Ncube also announced a reduction in bonus payments to public sector workers, with the 13^th cheque now set to be paid on the basic salary only, excluding allowances.

Raymond Majongwe, leader of the Progressive Teachers Union of Zimbabwe (PTUZ) said the government could not pay public sector workers salaries in a currency that it did not wish to be paid in.

“The government is telling teachers that they can never drive cars. Firstly, they pay us peanuts in worthless RTGS dollars then we have to buy foreign currency on the parallel market to buy the car and then buy more foreign currency to pay the government,” Majongwe said.

“Why are they refusing to accept the money that they are paying us in? We are very frustrated that minister finished his statement without coming out clearly on what mode of payment they are going to use for civil servants.

“The government is effectively telling us that the concerns of civil servants are not important. They cannot pay us in a currency that does not allow us to function. We have to pay for medicines in foreign currency and now we have to pay duty in foreign currency too.

“This government is worse than the supremacist white regime that did not consult. They have reduced our bonus to only include basic pay which is peanuts. Why did they remove Robert Mugabe if they can’t be better than him?”

Announcing the decision to charge foreign currency on imported cars, Ncube said there had been a surge over the last two years on “nonproductive goods, particularly motor vehicles.”

“In order to redirect use of scarce foreign currency to the productive sectors of the economy, I propose that customs duty on motor vehicles be levied in foreign currency acceptable as legal tender, with effect from November 23, 2018,” the minister told Parliament.

“This measure will, however, not apply on imports of commercial motor vehicles and vehicles for use by the physically challenged. Furthermore, payment of customs duty in foreign currency will also apply on selected goods. This measure will also apply on all import VAT and surtax.”