TAXATION AND THE HEALTH SYSTEM IN ZIMBABWE: A CASE OF NATION AIDS COUNCIL

Description

Tax revenue is money or consideration paid to the government compulsorily and is used by the authorities such as NAC to sustain HIV and AIDS Health care delivery of a country such as Zimbabwe. NAC was mandated by Act of Parliament of Zimbabwe to coordinate and strengthening the national response to HIV and AIDS, and reducing donor dependence. In addition, NAC is managing the National AIDS Trust Fund commonly known as AIDS Levy which is 3% of income tax paid by formal employers and employees. This study aimed to assess whether the current tax revenue can sustain the HIV and AIDS intervention demands. Specifically, to empirically establish the extent of health sector taxation revenue capacity to sustain the HIV and AIDS related interventions demands, to assess the adequacy of the current Health sector tax revenue to sustain the HIV and AIDS demands pre and post external funding and to suggest other possible ways to expand domestic generated revenue for HIV and AIDS support. A descriptive survey study design using both qualitative and quantitative methods was used to collect data for 132 study participants. Stratified random sampling method was used to select study participants. Results from the study showed that the current tax revenue cannot sustain the HIV and AIDS demands epidemiological, political, structural and programmatic if the donor funding is withdrawn. It was also found that the health sector taxation revenue has the no capacity to sustain the HIV and AIDS related interventions in Zimbabwe. On whether the current Health sector tax revenue is adequate to sustain the HIV and AIDS demands pre and post external funding, study results showed that it was not adequate. Based on the study findings, it is therefore recommended that NAC should look for other possible ways of expanding domestic generated tax revenue for HIV and AIDS support by including the informal sector, mining, telecommunication and road access among others.