CZI Calls For Changes To ITM [Two Cents] Tax, Calls It Unsustainable

The Confederation of Zimbabwe Industries (CZI) has castigated the Intermediary Money Transfer Tax, saying that it is unsustainable. It called for its amendment in the upcoming 2019 National Budget. The CZI complained that the tax was eating into its profits and needed to be tweaked to match the operating environment. This comes after President Emmerson Mnangagwa defended the tax, saying that it was already bearing fruit and  ‘is here to stay’. Under the new tax, transactions between $10 and $500 000 attract a two cents per dollar tax. In a statement, CZI said

We recommend that in the 2019 budget the exemptions for tax are widened to include loan draw-downs and loan repayments of the corporates and that an explicit commitment is made that the tax will be significantly modified by the end of 2019, so that the negative impact of the compounding of the text value chains is eliminated and replaced by more sustainable revenue measures.

More: Daily News