Mthuli Ncube's 2% tax raises $572 million in December

Mthuli Ncube's 2% tax raises $572 million in December
Published: 31 December 2018
Government says it has surpassed its monthly target for December and raised $572,4 million through the controversial two percent tax.

According to Finance minister Mthuli Ncube, revenue generated through the tax, also referred to as the Intermediated Money Transfer Tax (IMTT), will be channelled towards the funding of social services and devolution.

Ncube introduced the two percent per dollar tax in October but was forced to tweak it soon after he announced following a huge public backlash which saw panicking shoppers hoard goods and prices of basic goods going up.

The two cents per dollar now applies to transactions of $10 and above while transfers above  $500 000 attract a flat tax of  $10 000.

Through the Information ministry's official Twitter page, the government said it surpassed its monthly target by $129,1 million.

"Revenue collection efficiencies are part of government of Zimbabwe's efforts to enhance resource mobilisation.

"The two percent tax is part of this effort. As a result, in December 2018 up to the 26, $572,4 was raised surpassing the monthly target by $129,1 million," it said.

Ncube recently told Parliament that his ministry will use the money raised through the two percent tax to fund the provision of social services and provision of social safety nets.

He added that they have ring fenced the tax to ensure that it benefits the people. "…out of the revenue from two percent tax, we will extract $310 million and use it to finance the devolution needs.

We have taken the money from the people; we are giving it back to the people through the devolution exercise," Ncube told Parliament.

He added: "The remainder will be used for funding education, health services and closing potholes so that people really feel where the money is going.

"We need more ambulances so you will see us motivating for the purchase of more ambulances and supplying more schools desks to make sure that infrastructure is upgraded."

He also claimed that Zimbabweans have embraced the unpopular tax, adding that "the feeling that it has not been embraced is misleading."
- dailynews
Tags: mthulincube,


Latest News

Latest Published Reports

Latest jobs