New Zimbabwe.com

Mobile transfer tax injects $ 177 million in three months

By Business Reporter


THE 2 percent mobile transfer tax introduced by government late last year has injected $177 million into the economy, the country’s tax collector has revealed.

According to the Zimbabwe Revenue Authority (ZIMRA)’s 2018 annual revenue performance report, a total $ 177, 266, 319.04 was collected between October and December.

“The positive performance was anchored on the revision of the Intermediated Money Transfer Tax, general price increases experienced from the Third Quarter and improved revenue generation through increased voluntary compliance and enhancing of the Revenue Authority’s operational systems,” the ZIMRA report says.

The unpopular 2 percent levy was incepted in October last year by Finance Minister Mthuli Ncube.

Its introduction triggered a spike in black market rates of the United States dollar and a wave of price increases across the country.

The measure is in line with government’s Transitional Stabilisation Programme that will run until 2020.

Meanwhile, gross collections for the fourth quarter of 2018 amounted to $1.66 billion, which is 49 percent above the initial target of US$1.11 billion.

Net collections amounted to $1.56 billion after deducting refunds of $106.09 million, surpassing the target by 40 percent.

Comparatively, revenue collections for 2018 fourth quarter grew by 44 percent as compared to the preceding year.

In 2017, the Intermediated Money Transfer tax raked in a paltry $18,693,057 and the current collections have registered 848 percentage increase.