Zimbabwe Business Watch : Week 11
The mix of politics and business becomes more and more of a feature in each businessman’s mind.
There are now renewed threats by the pricing Commission and this time they are stating that there will be “No fines†meaning that offenders will automatically go to Jail.
This is no doubt an election ploy to force down prices artificially and attempt to deceive voters by placing the blame for economic failure on the battered business community.
The USD is now trading as high as 46 million (46 billion at the old values) and some traders have stopped dealing as they hang onto forex to try and achieve the biggest advantage possible on the escalating rate. This puts further pressure on the supply as demand remains healthy despite weak production levels.
The lowest paid Grade One worker is now moving into the executive tax bracket of 47,5% and this is a nightmare for employers who simply end up paying the tax man and not their productive workers> who they wish to reward and protect from hyper inflation.
