By The Intermediated Money Transfer Tax has been reviewed upwards to transactions above t ZWL$500 and USD$5.
Previously it applied on transactions starting from ZWL$300, USD$5 respectively.
In July government introduced a 2% tax on foreign currency transactions with a threshold from USD$5
Presenting the 2021 national budget in the National Assembly on Thursday, Ncube revealed that as part of tax relief measures and upward review of the IMTT tax free threshold has increased from ZWL$300 to ZWL$500.
Since its introduction in 2018 the tax has been criticised , but Minister of Finance and Economic Development Mthuli Ncube says it has “generated substantial resources that have enabled Government to support various infrastructure projects”, including the COVID-19 response.
Government in October 2018 introduced the 2% tax on electronic transactions which was received with much criticism.
Businesses have been criticising the tax saying it increases the cost of doing business.
Meanwhile , tax free threshold have gone up to ZWL$10 000 from ZWL$5000 with effect from 1 January 2020.
The increase however , does little for the lowly paid worker who earn ZWL$12 000.
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