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2% tax to remain despite 21 Day COVID-19 lockdown

The government said it will not remove the unpopular and cumbersome 2% tax despite the citizens going through a coronavirus difficult time coupled with the 21-days of unproductive.

In a statement dated Monday, March 30, the Minister of Finance and Economic Development Professor Mthuli Ncube said the tax will now be channeled towards the fight against the global pandemic coronavirus.

“The 2% Intermediated Money Transfer Tax (IMTT) which is currently ring-fenced for social protection and capital development projects and hence, will ordinarily be channeled towards COVID-19 related mitigatory expenditures.”

The move follows the Reserve Bank of Zimbabwe’s pronouncement of promoting electronic payments through the reduction of transaction charges.

RBZ Governor Dr. John Mangudya said, “The central bank also agreed with other banking sectors to suspend increase in charges related to the provision of all electronic payments during the pandemic.”

“The bank is also engaging mobile network providers to ensure that their mobile banking charges are reduced in order to promote electronic banking which is in line with social distancing”, he added.

Even after urging banks to reduce their electronic transfers in the wake of COVID-19 to promote social distancing , government is still reluctant to ease conditions for its citizens who have been eager to get relief amid this crisis.

The fact that government is keen on making sure that banks reduce electronic transfer fees but not willing to remove the 2% tax is quite unfair to the affected constituency.

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