We Will Continue To Collect 2% Tax - ED Speaks

At a Zanu PF North America briefing the president said the minister will continue to collect 2% because a single judge cannot overrule a law. The president was referring to last week’s court judgement by one Justice Zhou who set aside the 2% tax because it is illegal. The President echoed treasury’s position when he said:

Academically, they won the case, but factually they lost the case because we were clever enough. When they went to court they said it was introduced under a Statutory Instrument, but when the Minister of Finance put his Finance Act, we tucked in the provision and it went through Parliament and is now an Act of Parliament.

It cannot be overruled by a judge sitting alone. So, it is now law and the minister will continue collecting the money

Mthuli Ncube introduced the controversial 2% tax per electronic transactions above $10 at the infancy of his days as the Finance Minister. He said it would broaden the tax base and increase government revenue.

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