Mthuli Announces New Tax On Bank Cash Withdrawals

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Lovemore
in

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Mthuli Announces New Tax On Bank Cash Withdrawals

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Finance, Economic Development and Investment Promotion Minister Mthuli Ncube on Thursday announced a new tax on cash withdrawals from banks.

Presenting the 2026 national budget at the New Parliament Building in Mt Hampden, Ncube said that rising US dollar cash withdrawals increase the risk of informality, tax evasion, corruption, and administrative inefficiencies.

He noted that the emerging sector continues to account for a significant share of economic activity, with foreign currency making up over 90% of physical cash transactions in both formal and informal markets.

Ncube also warned that cash withdrawals are continuing to rise due to the influence of the shadow economy. Said Ncube:

“On average, ATM withdrawals amounted to approximately US$265.8 million per month between April 2024 and June 2025, of which over 90% were in United States dollars.

“Banks currently maintain nearly US$1 billion in cash and Nostro balances to meet withdrawal demand.

“The continued increase in cash withdrawals, which reached US$353 million in June 2025.

“In light of these challenges, it is imperative to introduce measures that discourage excessive cash withdrawals, enhance transparency, strengthen tax compliance and gradually shift economic activity toward formal and digital payment platforms.

“The existing cash withdrawal levies are no longer adequate to address the scale of cash-based transactions.”

To this end, Ncube announced a 0% withdrawal fee for individuals withdrawing between US$0 and US$500.

A 2% fee will apply to individuals for monthly withdrawals of US$501 to US$1,000, and to companies for monthly withdrawals of US$5,001 to US$10,000.

For individuals withdrawing more than US$1,001 per month, and for companies withdrawing above US$10,001, the proposed tax will be 3%.

Former MP Fadzayi Mahere warned that the new tax could discourage people from using the banking system and may also create opportunities for money laundering. She wrote on X:

“Why are you introducing a tax for withdrawing cash when bank charges are already so extortionate?

“Can you not see that you’re going to disincentivise use of the banking system?

“In normal countries, banking money earns you interest – in Zimbabwe, why do you punish people for using formal banking channels?

“To make matters worse, we know that fat cats and political elites don’t bank money at all.

“Do you not see them dishing out piles of cash every day? Can you not see that you’re creating a haven for money laundering?”

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Lovemore Muzira

Lovemore

Lovemore Muzira is a regular contributor to Pindula News with a background in Political Science and International Relations. He has eight years of experience reporting on local news, with a strong focus on politics, human rights, environmental issues, and social affairs.

Comments

17 responses

  1. Anonymous

    Taxing a salary withdrawal of 500 to $1000. That’s desperate and clueless!

    Reply
    1. Anonymous

      True

      Reply
  2. Dino

    Why kill the hard working g people that do not even earn enough to survive. Tax the big boys to feed the poor. Robin Hood style

    Reply
    1. Nyamz

      Wenhamo ndewenhamo muZimbabwe.This country so,inechitsinga.

      Reply
    2. Anonymous

      You levy tax on top of hefty bank charges . The depositor don’t get any interest for the money invested by the bank on overnight deposits. Instead of getting interest half if not 3/4 of the money goes to those nonsense charges.

      Reply
  3. T-one the rocket

    This is a useless finance minister income tax plus cash withdraw tax so the old salary payment system that is the brown envelop will pop up very soon

    Reply
    1. Innocent Muzhanye

      I think it is reasonable to a greater extent . Why should we need hard cash? We should purchase or procure using plastic money or online banking (BOL)for security, portability and convenience reasons. Few items that need cash, yes we withdraw tax free not exceeding $500. This will also reduce smurfing. People should bank/ deposit cash and reduce withdraw of hard cash to minimise the risk of thousands of Dollars robbery.

      Reply
      1. Anonymous

        It’s because you don’t bank money neither do you have income.

        Reply
  4. Victor David

    This guy is a Clown 🤡 knows nothing. That’s why he failed at Time Bank.

    Reply
  5. Victor David

    This guy is a Clown 🤡 government always looking for free money. He ran Time Bank into the ground. 🙄🤔

    Reply
  6. Samuel Beta

    I think the minister is mistaken. The problem is not people who are withdrawing their cash but banks that are failing to give interest on bank balances but keep charging the accounts. Funds left in the bank account are likely to less by month end. Why not encourage people to deposit money in their bank accounts by giving interest on positive balances than taxing the poor. That money was taxed from payroll side, you want further tax it. Thus cruelty.

    Reply
    1. Anonymous

      Cruelty at its best

      Reply
  7. Mazirudo

    This is pure madness,he is just promoting money laundering and feeding black markets.pple wil no longer be banking money and informalising the banking sector.

    Reply
  8. Anonymous

    Mthuli Ncube is now obsessed with milking the poor dry , how honestly does a functional minister of finance go on a rampage punishing those honest abiding citizens who prefer banking their hard earned cash in banks albeit at a cost in punitive taxes by both banks and government who now view bank interests as colonial . Zvigananda don’t bank their loot and when they do , they withdraw direct from Reserve bank but still even those shady dealings’ deposits should not be subjected to taxation . Mthuli Ncube has now cemented his portfolio as the Taxation Minister whose core business is to tax suffering citizens and businesses to a standstill.

    Reply
  9. 😞😡

    We are already suffering.

    Reply
  10. David kawanzi

    It is so hard to our department of security guard we earn less than 150usd plz fill mercy.

    Reply
  11. Innocent Muzhanye

    I think it is reasonable to a greater extent . Why should we need hard cash? We should purchase or procure using plastic money or online banking (BOL)for security, portability and convenience reasons. Few items that need cash, yes we withdraw tax free not exceeding $500. This will also reduce smurfing. People should bank/ deposit cash and reduce withdraw of hard cash to minimise the risk of thousands of Dollars robbery.

    Reply

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