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From buying groceries with mobile money to transferring salaries through banks, nearly every electronic payment in Zimbabwe carries a charge commonly known as the “2% tax”, officially called the Intermediated Money Transfer Tax (IMTT).
Introduced to boost government revenue, the levy has become one of the country’s most significant and controversial taxes, shaping how consumers and businesses use digital payments.
The IMTT was introduced in 2018 and has since been adjusted through successive national budgets.
In 2026, electronic transfers made in U.S. dollars attract a 2 percent tax, while transactions conducted in ZiG, Zimbabwe’s gold-backed currency, are charged at a lower 1.5 percent rate.
Authorities say the reduced ZiG rate is designed to encourage greater use of the local currency, which continues to face public skepticism amid years of currency instability and inflation.
Despite the incentive, many Zimbabweans still prefer transacting in U.S. dollars, which remain dominant in the retail sector.
The tax applies broadly across the digital payments system.
Mobile money platforms such as EcoCash and OneMoney automatically deduct the levy during transactions, as do banks and electronic payment services such as ZIPIT.
Whether paying school fees, transferring money to relatives or purchasing goods via point-of-sale machines, the sender shoulders the cost.
To prevent excessive charges on large transactions, the government introduced a ceiling on the tax.
IMTT is capped at US$10,000 per transaction, meaning high-value transfers do not continue accumulating charges beyond that limit.
A US$1 million transfer, for instance, would attract the maximum US$10,000 levy instead of US$20,000.
Certain sectors and institutions are exempt, payments made to farmers for grain and wheat deliveries do not attract the tax, reflecting government efforts to support agriculture.
Transactions involving the Mutapa Investment Fund and its subsidiaries are also excluded.
Government officials argue the tax has become a cornerstone of Zimbabwe’s fiscal system.
Business groups say the levy increases the cost of doing business in an economy already burdened by high operating expenses.
Companies that rely heavily on electronic transactions often absorb significant cumulative costs, especially retailers and service providers handling large daily payment volumes.
In response to industry concerns, authorities now allow businesses to deduct IMTT expenses when calculating income tax, providing limited relief for firms operating on narrow profit margins.
While policymakers see IMTT as a practical revenue tool, critics argue it also discourages digital transactions and places added pressure on ordinary consumers.
For now, the IMTT remains deeply integrated into Zimbabwe’s cash-light economy, affecting nearly every swipe, transfer and mobile payment made across the country.
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