Finance and Economic Development Minister Professor Mthuli Ncube says the 2 percent intermediated money transfer tax has started bearing fruit.
He said the money collected so far is set to go towards recruitment of primary and second school teachers and various developmental projects. Between December 1 and 26 last year alone, Government collected $572,40 million through the 2 percent tax, exceeding the monthly target by $129,1 million. Ncube told The Herald the money collected will go towards devolution. Said Ncube:
The 2 percent transaction tax initiated in October 2018 has started bearing positive results on the economy. So it has helped us on at least four things, which include the expenditure on the recruitment of 3 000 additional teachers; the recruitment of 350 plus university personnel, then also the issue of devolution. The $310 million (announced in the 2019 Budget) for devolution is going to be covered by the 2 percent tax and yesterday (last Thursday), I was in Kanyemba and we know that the Kanyemba area alone is going to be given $2 million out of the $310 million for that purpose.