By 
By Ross Moyo
Minister of Finance Economic Development and Investment Promotion, Professor Mthuli Ncube has made revelations that will allow companies and individuals to pay their taxes in the local Zimbabwe Gold (Zig) currency as a measure to strengthen the unit.
Since the ZiG is backed by 2.5 tons of gold and $100 million in foreign currency reserves held by the Reserve Bank of Zimbabwe (Rbz), this will set aside a policy in place since 2020 that allowed taxes to be settled in the currency businesses mostly traded in which is usually the united states’ dollar. This new system will specify what ratio of taxes will need to be paid in ZiG and foreign currency, and those that can only be settled in the new unit.
Minister Mthuli Ncube’s raft of measures aimed at ensuring the ZiG, does not suffer the fate of its six predecessors which include the bond Note, the real time gross settlement (RTGS), and the Zimbabwe dollar, will benefit from these changes.
The zig was Introduced on April 5, replacing the Zimbabwean dollar, which had lost 80% of its value against the US dollar on the official market this year before it was abandoned.
With these plans underway, Zimbabwe will overhaul its tax system to boost the ZiG currency through the introduction of these new regulations that will require businesses to settle a portion of their taxes in ZiG to boost the new bullion-backed currency that’s had a “positive impact” on the economy, according to the finance minister.
“Treasury is stepping up to complement the fiscal and monetary policy framework aimed at further anchoring the currency, exchange rate and price stability,” Mthuli Ncube confirmed in a statement.
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