The government is considering another cut to the Intermediated Money Transfer Tax (IMTT), which could lower the cost of electronic transactions for individuals and businesses.
Finance Minister Mthuli Ncube said the Government is looking for alternative revenue sources to cover any shortfall.
Speaking at the 23rd ZANU PF Annual National People’s Conference in Chinhoyi last week, Ncube said the tax on ZiG-denominated payments was reduced from 2 per cent to 1.5 per cent in January this year, while foreign currency transactions remained at 2 per cent.
“Bank charges were reduced, and banks have fully complied,” he said.
“IMTT was reduced for ZiG payments from 2 per cent to 1.5 per cent. The tax deductibility implies that the effective tax rate on corporates is lower than 1.5 per cent and 2 per cent on local currency and foreign currency transactions, respectively.
“Currently, consideration is in progress to further reduce IMTT while identifying alternative revenue sources that can close the revenue gap.”
According to Treasury, more than 70 per cent of revenue raised from IMTT has been channelled to infrastructure, health, education and social safety nets.
Ncube said the Financial Intelligence Unit (FIU) will continue monitoring financial transactions to curb illicit dealings that fuel inflation and exchange rate instability.
“The FIU has continued to carry out monitoring and analysis of financial transactions to identify illicit transactions, including illegal dealing in currency, corruption and other illicit transactions,” he said.
“Contractors and other beneficiaries of Government payments are also monitored and proactively engaged to ensure that they do not channel funds they receive to the parallel market.”
He said 13 companies were penalised for illegal foreign currency dealing between April and June 2026 after a whistleblower reported them to the FIU.
More: The Herald
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