Harare, (New Ziana)-Finance, Economic Development and Investment Promotion Minister Prof Mthuli Ncube on Thursday cut the Intermediated Money Transfer Tax (IMMT) on the Zimbabwe Gold (ZiG) transactions from 2 percent to 1.5 in a move intended to promote use of the the local currency.
“Consistent with Government’s commitment to supporting business growth and maintaining fiscal stability, I propose to review the IMTT framework as follows: reduce the IMTT rate on ZiG-denominated transactions from 2 percent to 1.5 percent, in order to promote use of local currency and lower transaction costs. IMTT on foreign currency transactions will be maintained at 2 percent and designate IMTT as a tax-deductible expense for purposes of Corporate Income Tax computation,” he said.
He said he will expand the definition of Financial Institution for purposes of IMTT to include Microfinance Institutions.
The Intermediated Money Transfer Tax (IMTT) is a 2 percent tax on electronic money transfers through financial institutions, mobile platforms, and payment providers.
Since IMTT contributes 8 percent of tax revenue, to cover the gap, Prof Ncube raised Value Added Tax from 15 percent to 15.5 percent.
“As a quid pro quo to the above concession and to partially compensate for the revenue forgone arising from the IMTT rate reduction and deductibility measures, I propose to increase the Value Added Tax rate by 0.5 percent to 15.5 percent, effective 1 January 2026,” he said.
New Ziana
