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Zimbabwe: Improved AIDS levy collections fill part of funding gap
PlusNews
February 03, 2012
http://www.plusnews.org/report.aspx?reportID=94786
With global
funding for HIV/AIDS on the decline, Zimbabwe's innovative AIDS
levy - a 3 percent tax on income - has become a promising source
of funding for the country, with a dramatic increase in revenue
collected in the past two years.
The levy was
introduced in 1999 to compensate for declining donor support, but
low salaries and the poor performance of industry meant not enough
money had been collected - until recently. In its 2010 report on
Zimbabwe's progress in implementing the Declaration of Commitment
on HIV/AIDS, adopted by the General Assembly in 2001, the government
admitted the levy was "essentially non-existent in 2007-2008
due to economic challenges the country was facing".
According to
the organization's recently published audited financial statements
for the year ending 31 December 2010, a total of US$20.5 million
was collected in 2010 against $5.7 million the previous year.
Murombedzi Kuchera,
chairman of the National
AIDS Council Board, attributed the increase to improved revenue
flows owing to improved political and economic stability in the
country, which has created more jobs in the formal sector and improved
tax remittances. Zimbabwe's economy has witnessed steady growth
following the formation of the coalition
government of Prime Minister Morgan Tsvangirai and President
Robert Mugabe in 2009.
"The 259
percent increase in the collections was mainly through the increased
capacity utilization by industry and commerce," Kuchera said
in his statement.
Although the
revenue figures for 2011 have not yet been audited, the National
AIDS Council estimates it collected about $25 million. However,
the exact figure will be confirmed after the audit by the Comptroller
and Auditor-General, which audits all the finances of parastatals,
at the end of 2012.
"The AIDS
Levy is certainly proving to be a good source of funding for the
country's HIV and AIDS response," National AIDS Council
information and communication officer Orirando Manwere told IRIN/PlusNews.
"Our projections
are that for 2012, with the growing economic stability in the country,
we will collect more than $30 million through the funds and even
more in 2013. However, this is all largely dependent on economic
growth," he added.
Although 347,000
people are on antiretroviral (ARV) treatment in the country, another
600,000 need the medication. The treatment gap widened after Zimbabwe
adopted the new World Health Organization guidelines that recommend
starting treatment earlier.
The AIDS levy
contributed almost a quarter of the money to purchase ARVs, while
76 percent of the treatment programme was financed by international
donors such as the Global Fund to fight AIDS, Tuberculosis and Malaria
and the UK Department for International Development.
But the country
- one of the hardest hit by HIV/AIDS - still needs a lot more funding
to cover the "worrying" treatment gap, cautioned HIV/AIDS
activist Stanley Takaona.
"Many
people are dying because they cannot access treatment. Zimbabweans
are playing their part to take care of their own by contributing
to the AIDS Levy but this is not enough. Government must allocate
funds from the fiscus to fund the HIV/AIDS response; it's
their responsibility," he said.
Kumbirai Mafunda,
spokesperson for the Zimbabwe Lawyers for Human Rights, warned against
complacency. "Yes, the increase in the AIDS Levy is remarkable
but we all know it's not enough... now government has to increase
budget allocations to the health sector."
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