2% tax no longer apply on transactions below ZWL$500 , USD$5

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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