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Message: [QUOTE="Munyaradzi Mafaro, post: 74991, member: 636"] The head of Zimbabwe's national business chamber, Chris Mugaga, is blasting a planned tax hike. He says raising the value-added tax to 15.5 percent will crush the formal sector in an already brutal tax climate. The government wants the increase to offset a small cut to another levy, targeting higher total revenue. Mugaga argues the move ignores severe poverty. He notes that while regional VAT rates might be similar, Zimbabwe piles on extra fees and taxes that others do not have. The business leader called the VAT change unacceptable, warning it could create a budget disaster without serious spending cuts. He also pointed to massive waste in government procurement as a huge drain on funds. [/QUOTE]