New Zimbabwe.com

Mthuli Ncube’s 2 percent transfer tax gazetted

By Alois Vinga

FINANCE Minister, Mthuli Ncube’s newly incepted 2 percent tax on electronic transfers has been given legal expression following its Friday gazetting.

The notice confirming the new development was published in the government gazette, a platform used to notify the public of a new law or statute.

Section 22 (g) of the Finance Act which previously stated that five cents tax will be deducted per every transaction has been set aside in place for section 36 (g) which legalises the new mobile transfer tax.

“Section 22G the Finance Act [Chapter 23:04] is repealed and the following is substituted: 22G Intermediated Financial Transactions Tax With effect from the day after the promulgation of these regulations, the intermediated money transfer tax chargeable in terms of section 36G,” reads the notice in part.

The new tax shall be deducted at the rate of two cents per every one dollar transferred on mobile platforms.

If a transaction is equivalent or exceeds $500 000 the tax shall not exceed $10 000 in a single transaction. Any transaction below $10 shall not be taxed.

The tax will also not be applied on fuel dealers.

The new levy has been widely criticised by ordinary Zimbabweans and sections of the business community who feel it was an unnecessary burden to a hard-pressed transacting public.

Zimbabwe Congress of Trade Unions leaders were Thursday arrested after they had tried to stage demonstrations against the tax.

President Emmerson Mnangagwa has said that the new levy was a necessary “pain” as his government tries to reverse years of economic decay through paying some outstanding debt.

However, locals feels they have no obligation to be taxed so that their government could repay debts which they had no idea where they emanated from.