Zim Finance Minister explains why 2 percent tax is going nowhere

Business Top Stories

ZTN Correspondent

ZIMBABWE’S Finance Minister Mthuli Ncube says the scrapping of a Statutory Instrument (SI) 205 of 2018, which enabled the government to levy 2 percent tax on electronic money transactions above RTGS$10, has no material effect.

Yesterday High Court Judge Justice Happias Zhou ruled in favour of an application by Combined Harare Residents’ Association (CHRA) director Mr Mfundo Mlilo challenging SI 205-2018.

In his application, Mlilo argued that the Government’s decision was made without the necessary backing of the law, citing in particular the amendment of the income tax or the regulation of the tax in a SI.

 But Ncube was quick to highlight that the SI has since been replaced by Finance Act No 1 of 2019 which provides for the collection of the tax.

“That judgement will not affect the collection and levy of the Intermediated Money Transfer Tax because the collection of the Tax under that Staturtory Instrument 205/2018 was subsequently validated by Parliament under the Finance Act No. 1 of 2019.

“Consequently, the 2% tax will continue to be levied,” said the Finance Minister in a statement.