Breaking News: High Court Judge Justice Zhou has set aside SI 205/2018 on the 2% transaction tax. The case was argued by @.
Called the Intermediated Money Transfer Tax (IMMT), the government effectively taxes every money transfer in Zimbabwe, for both ordinary people and companies, 2% tax.
The tax was anounced on 1 October 2018 by the Ncube in a bid to increase government’s revenue. The government has since been able to collect nearly ZWL $100 million each month through the tax.
About $50 million of the collected money each month is reportedly used to rehabilitate the country’s road infrastructure.
Soon after the introduction of the tax last year, the director of the Combined Harare Residents’ Association, Mfundo Mlilo is challenged its lawfulness. The respondent in the case is the Finance minister Mthuli Ncube and the case was being argued by Tendai Biti.
The tax has, however, since been enacted through the Finance Acts (Budget) of 2019.
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