Government has increased the minimum taxable amounts for intermediated money transfer tax (IMTT), better known as the 2 percent tax, to $100 from $20 per transaction for individuals as it sought to ease the burden on low income earners. The review takes effect from January next year.
The tax, which was introduced last year to spirited public opposition, has now widely been accepted after Government insisted it would not go away. President Mnangagwa at the time described the tax as a “necessary pain”.
The IMTT spawned a higher demand for bank notes as people sought to avoid paying it. Funds collected from the tax have been used to fund emergency programmes as well as other critical social programmes.
Finance and Economic Development Minister, Professor Mthuli Ncube, presenting the 2020 National Budget in Parliament, said the tax had managed to force other sectors, which generally escaped paying tax, from making a contribution to the fiscus. — New Ziana.