Electronic Transaction Tax Pegged at 2 cents per every dollar transacted
Harare – Newly minted minister of Finance and Economic Development, Mthuli Ncube says starting today (October 1, 2018) electronic money transfer tax is now pegged at 2 cents per every dollar transacted in a bid to expand the tax base.
Speaking just after the Reserve Bank Governor 2018 Monetary Policy Statement to delegates and members of the Fourth Estate, Ncube said the decision was meant to address the economic challenges currently facing the country.
In 2003 the Government of Zimbabwe pegged the electronic money transfer to 5 cents per transaction.
“There is need to increase the tax base as it is vital to revenue collections. Electronic transactions for the year to date is $1.7 billion, an indication that the review will be useful to address the challenges currently bedevilling the country.
“We reviewed the issue and it will be 2 cents for every dollar transacted effective today,” he said.
This however, attracted much criticism from economic analysts that it is only going to be a burden to Zimbabweans who are already struggling to survive in these trying times where most of them are living from hand to mouth.
“This will burden more the transacting public who are already struggling to survive in this plagued Zimbabwe. Generally not many will transact just a dollar but huge amounts meaning this will be a burden to the ordinary Zimbabweans who will be exposed to that electronic transactions taxation.
“For instance if you buy a loaf of bread per day and charged 2 cents per that transaction at the end of the month it will translate to 60 cents per month and this will add up to other transactions which one does for the whole month,” said an economic analyst who spoke on condition of anonymity.
He added that the Government should address the challenges facing Zimbabweans other than giving pressure on the problems already there.
Zimbabwe is ranked as one of the highest taxed nation with economic analysts saying this move by the Finance minister is not a remedy but will continue sweat the transacting public who are already burdened by the taxation in the country.