Treasury study vindicates IMMT implementation
Extensive research conducted by the Treasury has shown that the Intermediated Money Transfer Tax (IMTT) does not deter the use of the Zimbabwe Gold (ZWG) currency.
Early last year, the Treasury standardised IMTT rates for transactions in ZiG and US dollars at two percent for values up to US$100 or the local currency equivalent. The transaction tax also applies to gold-backed digital tokens (GBDTs).
For transactions exceeding US$100 or the equivalent in ZiG at the prevailing interbank exchange rate, a lower rate of US$0,05 per dollar applies.
These provisions are outlined in Statutory Instrument (SI) 80 of 2024, Section Three of the Finance Act, under the title The Finance (Amendment of Sections 22B and 22G) Regulations, 2024.
Speaking recently on X, the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, stated that the study ruled out any adverse impact of the IMTT.
“On the IMTT issue, we conducted research and 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 provide proof that it was discouraging the use of ZiG, we are open to your suggestions and hearing from you,” he said.
Zimbabwe Gold
Business leaders have long argued that the transaction tax, alongside corporate tax, value-added tax and funding costs, poses significant challenges for companies.
However, the Treasury has indicated that the tax will not be abolished in the near future, citing the Government’s financial constraints and the critical role the IMTT plays in funding essential programmes. The tax generates substantial revenue for the Government.-chronicle
