Finance Minister Mthuli Ncube Raise Intermediated Money Transfer Tax
Professor Mthuli Ncube, Minister of Finance and Economic Development, has stated that the Intermediated Money Transfer Tax on domestic foreign currency transactions has been raised from 2% to 4% in order to encourage the use of the Zimbabwe dollar.
Analysts advocated for the repeal of the “regressive tax” in order to “reduce the massive tax load.”
However, in his 2023 Budget address at the newly constructed multi-million dollar Parliament Building in Mt Hampden, Ncube stated that the tax had been hiked.
He stated:
Mr. Speaker Sir, in order to promote usage of the local currency, Government increased Intermediate Money Transfer Tax (IMTT) on domestic foreign currency transfers from 2% to 4%.
It has, however, been observed that some entities are now preferring to settle transactions in cash instead of electronic transfers.