Zim central bank wants mobile money tax repealed
The Zimbabwean central bank has proposed removing a 2% tax on mobile money and digital transactions, saying it will boost electronic payments in the country.
The Reserve Bank of Zimbabwe's decision comes as the central bank works to make its new gold token acceptable as a form of transaction settlement.
"In order to complement efforts to formalise the economy and to give more impetus to the use of non-cash-based means of payment in the economy, it is recommended that government considers removing Intermediated Money Transfer Tax (IMTT) on transactions that are intermediated through plastic bank cards and other digital platforms," the head of the central bank, John Mangudya, said
Zimbabwe imposed a 2% IMTT on mobile money, electronic, and bank transfer transactions in 2019.
The Zimbabwe National Chamber of Commerce is also advocating for the removal of the mobile money levy.
The Zimbabwean taxman continues to profit from the mobile money tax as IMTT revenue collections exceeded stated expectations by 6.93% for the half-year period.