Treasury study shows IMMT does not deter the use of local currency

Senior Business Writer
FINANCE, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube says extensive research by the Treasury has shown that the Intermediated Money Transfer Tax (IMTT) does not deter the use of the Zimbabwe Gold currency.
Early last year, the Treasury moved in to standardise IMTT tax rates on ZiG and US dollar transactions at two percent for values up to US$100 or the local currency equivalent.
The transaction tax also applies to transactions for gold-backed digital tokens (GBDTs).
A lower rate of US$0,05 per dollar will apply on any transaction above US$100 or the equivalent value in ZiG at the ruling interbank exchange rate.
The provisions are contained in Statutory Instrument (SI) 80 of 2024, Section Three of the Finance Act. The new regulations may be cited as The Finance (Amendment of Sections 22B and 22G) Regulations, 2024.
Speaking on X on Thursday last week, Prof Ncube said “On the IMTT issue, we did research, and we were able to prove that the IMTT did not discourage the use of the ZiG at all.
“There might have been other considerations, but IMTT was not one of them. Unless you can come up with proof that it was discouraging the use of ZiG, we are open to your suggestions and hearing from you,” he said.
Business leaders have long claimed that the transaction tax, alongside corporate tax, value-added tax, and funding costs, poses significant challenges for companies.
However, the Treasury has stated that the tax will not be abolished in the near future due to the Government’s financial constraints and its critical role in funding essential programmes. The IMTT generates substantial revenue for the Government.
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