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The Zimbabwean government is considering further reductions to the Intermediated Money Transfer Tax (IMTT) as part of broader fiscal measures to cushion businesses, spur formal transactions, and support economic growth.
Speaking on fiscal policy adjustments, Minister of Finance, Prof. Mthuli Ncube confirmed that Treasury is evaluating additional cuts to the transaction tax while identifying alternative revenue streams to plug potential fiscal deficits.
The government previously reduced the IMTT rate on Zimbabwe Gold (ZiG) transactions from 2% to 1.5% in January 2026, aimed at encouraging the adoption of the local currency. However, foreign currency transactions remain taxed at 2%.
The policy shift appears to be bearing fruit.
According to Treasury data, ZiG payments expanded significantly, accounting for 43% of total transactions processed through the national payments system by August 2026.
Despite criticism from industrial bodies such as the Confederation of Zimbabwe Industries (CZI), which has persistently lobbied for the complete scrapping of the tax, Treasury defended the levy’s critical role in national development.
Official figures reveal that over 70% of revenue collected from IMTT has been directly channelled toward critical public expenditures, including infrastructure projects, health service delivery, basic education, and social safety nets.
To safeguard the financial sector during these policy realignments, the Financial Intelligence Unit (FIU) continues to monitor transactions closely to prevent illegal currency trading and parallel market activities that threaten exchange rate stability.
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