The Reserve Bank of Zimbabwe has ordered retailers and wholesalers to limit the amount of cashback to not more than $20. This is with immediate effect. According to the central bank, this is being done to promote the use of plastic money, curb money laundering and tax evasion. There is a severe shortage of cash in Zimbabwe with people spending hours in bank queues to get as little as $50.
In a statement yesterday, the Reserve Bank said:
Any cash-back facility made available by retailers and wholesalers shall not exceed an amount of $20.00,
Retailers and wholesalers shall be enjoined, in compliance with the provisions of the Bank Use Promotion Act [Chapter 24:24], to bank the cash generated from their businesses and maintain records of all transactions (including purchases, sales, discounts and banking).
The central bank also ordered businesses to stop charging different prices depending on the mode of payment. Part of the statement reads:
For the avoidance of doubt, retailers and wholesalers shall not charge any premium for the sale and purchase of their wares on the basis of mode of payment. Similarly any cash or quantity discount shall, in accordance with best practice, be granted in the normal course of business and not on the basis of the multiple pricing system.
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