The 2 cents intermediary money transfer tax recently introduced by Government is helping the country to significantly narrow its budget deficit, President Mnangagwa has said.
Responding to questions from delegates at the 3rd annual Public Sector Audit Conference in Harare yesterday, the President said the tax was critical in transforming the economy.
Delegates had argued that the tax was contrary to the ease of doing business push.President Mnangagwa responded: “I do not
think it is a hindrance. It has helped us a lot now to narrow the deficit gap in our economy.
“Yes, initially when it was articulated by the Minister of Finance and Economic Development (Professor Mthuli Ncube) it had overlooked a lot of people who in our view ought to have been left out. He did his best to re-explain it and move out from
compliance many categories whom we think would cause a prohibitive manner in doing business.”
Under the new tax, transactions between $10 and $500 000 attract a 2 cents per dollar tax in measures announced by Prof Ncube to raise revenues and reduce Government
borrowing, especially through the issuance of Treasury Bills and a Reserve Bank of Zimbabwe (RBZ) overdraft facility.State media