2023 Budget: Minister Ncube Reduces Intermediated Money Transfer Tax By 50%

Finance and Economic Development Minister, Mthuli Ncube has proposed to reduce the Intermediated Money Transfer Tax from 4% to 2% on foreign currency transactions.  

Analysts had called for the removal of the “regressive tax” to “alleviate the huge tax burden.”

However, in his 2023 Budget presentation delivered at the newly built multi-million dollar Parliament Building located in Mt Hampden, Ncube said the tax had been raised. He said:

In order to promote use of the banking system, I propose to align the IMTT on foreign currency transactions to local currency transactions at a rate of 2%

This measure takes effect from 1 January 2023. In addition, the government will consider reviewing other measures to strengthen the foreign currency system, including the 20% surrender requirement for domestic foreign currency transactions

Exempt Transactions

In order to mitigate against higher wheat prices and consequently the price of bread and other wheat products, I propose to exempt from IMTT, the transfer of funds to farmers, for the purchase of wheat by private off-takers approved by the Agricultural Marketing Authority, for the period 1 September 2022 to 31 March 2023.

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