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Business Reporter

ECOCASH, Zimbabwe’s largest mobile money platform, has reduced its US dollar transfer charges after the Government slashed the Intermediated Money Transfer Tax (IMTT) to two percent down from four.

Following intensive lobbying from the business community, a downward review of the IMTT on domestic foreign currency transfers came into effect on 1 January.

Captains of industry have been complaining about IMTT, which they said was too high and, therefore, crippling business operations.

The objective of the IMTT was to bring the previously untaxed informal businesses under the tax bracket but formal businesses are saying this is double taxation.

In an update, Ecocash said the reduction of charges means their customers now enjoy lower tariffs when transacting on the platform.

EcoCash said the two percent tax only applies to transactions higher than US$5 adding that all cash-in transactions were free.

“According to the new schedule, a registered EcoCash customer will pay a total of US$0.33 (US$0.20 IMT tax, and US$0.13 EcoCash fee) when sending US$10 to their friends or loved ones. At the same time, those cashing-out the US$10 will only be charged US$0.17 in transaction charges.

“Sending US$50 now attracts a two percent tax of US$1.00 and a US$0.65 transaction charge, bringing the total transfer fees to US$1.65, while those cashing-out US$50 will be charged US$0.85.

“Customers intending to send US$100 will part with US$3.30 – made up of US$2 in tax and US$1.30 in transaction fees.  A cash out of US$100 attracts US$1.70 in charges.”