'2pc tax to stabilise macro-economy'

HARARE - Finance minister Mthuli Ncube said on Wednesday the new tax on electronic payments was a painful but necessary measure and urged Zimbabweans to be prepared to go through temporarily turbulent times after which the economy will stabilise.

The imposition of the levy which will apply on mobile and card payments and bank transfers above $10 has sparked a public outcry.

“Painful policies like the Intermediated Financial Transactions Tax infamously known as the 2 percent transaction tax and the removal of SI122, 8 amongst other measures, are all at the heart of a wider recovery plan that must not be read in the short term but rather in the long term, with long-term returns,” Ncube told guests at a Zimra appreciation awards dinner.

“As Zimbabweans, it is imperative that we embrace the new Intermediary Money Transfer Tax of 2 cents and be prepared to go through temporarily turbulent times after which we can stabilise our macro-economy.

“The tax is designed to broadly capture all economic activity or transactions — including the informal and shadow ones — raise revenue, close the fiscal deficit and restore confidence through low budget deficit and reduced domestic debt,” he said.

Comments (2)

My bankers are not charging the 2% tax because it is not legal.

citizen - 2 November 2018

This 2pc tax is just a drop in the ocean. Zimbabweans have been undertaxed for many years. The government should levy wealth tax as well as enacting "Unexplained Wealth Orders Regulations". There should be a once off wealth tax for ALL properties in Zimbabwe above US$50 000. Besides this, all people who cannot explain how they acquired properties should pay a special wealth tax levy of 99% of the market value of the properties, failing which the properties will be seized and sold by the State. It is common knowledge that all proceeds of corruption are channelled into real estate. Its much easier to levy wealth tax than to prosecute offenders who can easily get away through legal technicalities.

Edgar Muzawazi - 4 November 2018

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