>> The effects of a new tax on money transfers is taking hold in Zimbabwe. The new levy imposed last week, has been met by public outcry. The Finance Chief says, the 2% tax hike will be used for roads, and the health, and education sectors. But, prices of basic goods including cooking oil and flour have short up.
When Zimbabweans complain, they're already struggling to make ends meet. In the capital of Harare, many are stocking up on supplies. They're worried that there could soon be a shortage of other commodities, like milk, bread and sugar.>>
> This resident says some shops have already been forced to close, as prices go up more every day.
And, there are more serious concerns, too. Oil companies temporarily stopped delivering fuel, causing shortages. And the price of medical drugs have also spiked in the last few days. President Emmerson Mnangagwa, says the new tax was a painful but necessary step. But business owners and citizens say, they're paying for the government's reckless spending.
Economic analysts said the tax would raise nearly $2 billion US annually. Zimbabwe is facing acute shortages of US dollars. The country adopted dollars in 2009, when it abandoned its own currency after hyper inflation made it worthless.