Home Business Joseph Busha rubbishes proposal for setting up Victoria Falls Securities Exchange

Joseph Busha rubbishes proposal for setting up Victoria Falls Securities Exchange

by Byron Adonis Mutingwende
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Maverick politician and astute businessman, Joseph Makamba Busha, who is the President of FreeZim Congress Party said instead of setting up the Victoria Falls Securities Exchange (VFEX), Finance Minister Mthuli Ncube should concentrate on serious matters around building a strong economy.

“The Minister of Finance Hon. Mthuli Ncube proposes to start up the Victoria Falls Stock exchange. He must forget, scrap that idea and focus on real issues affecting our people. The government wanting to ban the trading of dual listed Old Mutual shares on the Zimbabwe Stock Exchange will spook any investor and make the proposed Victoria Falls Stock Exchange a white elephant.

“Policies and actions must converge. Foreign investors enjoy more benefits than locals already. In the next two years running to 2023 general elections, Zimbabwe will be owned by Belarus, Russia, China and a few ZANU (PF) elites. Economic development must be inclusive. I urged the current to be accountable to the citizens and not plunder the country,” Busha said.

The Zimbabwe Government intends to set up an Offshore Financial Services Centre (OFSC) as part of efforts to develop the financial services sector, through the provision of opportunities for global investment.

The Victoria Falls Special Economic Zone has created an opportunity to set up the VFEX OFSC, as a subsidiary of the main board of the Zimbabwe Stock Exchange. The VFEX will thus be operated from the central business district of Victoria Falls.

Dividends taxation

With effect from 1 August 2020, Non-Resident Shareholders Tax shall be calculated at the rate of:

  • 10 percent on a dividend distributed from security listed by registered security exchange (other than the Victoria Falls Stock Exchange)
  • 5 percent on a dividend distributed from security listed on the Victoria Falls Securities Exchange
  • 15 percent in the case of any other dividend.

Exemption from corporate tax

The Victoria Falls Securities Exchange is exempted from payment of Income Tax with effect from 1 August 2020.

Capital Gains Tax

Amounts received or accrued on the sale or disposal of shares or other marketable securities listed on the Victoria Falls Securities Exchange is exempted from Capital Gains Tax with effect from 1 August 2020.

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