Ncube announced a two cents per dollar transaction tax on 1 October but it was only gazetted yesterday and came into effect today.
The tax, which is aimed at largely roping in the informal sector, is for transactions of $10 and above but there is a cap of $10 000 for transaction of above $500 000.
The tax was strongly opposed by the nation but President Emmerson Mnangagwa stood behind his Finance Minister.
Prices rocketed, fuel ran out and the exchange rate ran amok.
Exchange rates, however, started falling when Afreximbank guaranteed the exchange rate of the bond note at par with the United States dollar and the Confederation of Zimbabwe Industries changed its mind to welcome the tax yesterday and exchange.
The MDC, however, said the statutory instrument that Ncube used to regularise the tax was unconstitutional in two ways.
“Firstly Parliament’s primary law making power cannot be delegated and secondly a statutory instrument cannot repeal an act of parliament neither can it be in opposition of an enabling act,” the MDC said.
“Fundamentally, the creation of a robber state which pick pockets the poor is an evil of the highest order.
“Forcing the suffering masses living in abject poverty to fund lives of the political elites who are the sole reason of economic decay is unbelievable.
“It is also the opposite of the interventions required, taxing the citizens to death in a recession is digging the economy deeper into an abyss.”
The main opposition party also demanded the following:
- That Mthuli resigns forthwith for causing economic chaos.
- The new taxes must be reversed unconditionally.
- Supply side solutions be employed – that is the sane way to expand fiscal leg room.
- National dialogue be initiated in line with President Chamisa’s 5 point plan.
- An Emergency Economic Recovery program must be adopted and stop the unpalatable suffering of the Zimbabwean people.