Taxing RTGS Transactions To Solve Budget Deficit Is Providing Phantom Solutions To Real Problems- Noah Manyika

Build Zimbabwe Alliance leader Noah Manyika has said taxing electronic balances is not a solution.

Manyika said taxing Real-time gross settlement (RTGS) balances will not solve the deficit issue since RTGS balances are not real money. Finance Minister Mthuli Ncube announced the 2 cents per dollar on all electronic and mobile money transfers. Ncube also announced exemptions. Said Manyika:

If the RBZ Governor has essentially said RTGS balances are phantom balances, then “expansion” of revenue collection by taxing RTGS transactions to deal with the deficit is digging ourselves deeper into a hole by providing phantom solutions to real problems.

Addressing delegates attending the 2019 pre-budget seminar in Bulawayo last month, Mangudya said he did not know the origin of the $10 billion RTGS balances which he said are not backed by real money. Said Mangudya:

In that amount only 4,5 percent are coins and notes, which is your bond notes and coins… therefore, if we remove them they won’t resolve the problem. The problem is about the 95,5 percent held as RTGS balances in your accounts. Where is it coming from? So, the question which we should be asking ourselves is where is this money coming from?

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