Debra Matabvu
Senior Reporter
GOVERNMENT is considering a further reduction of the Intermediated Money Transfer Tax, a move that could ease the cost of electronic financial transactions for individuals and businesses.
This comes as transactions settled through the Zimbabwe Gold (ZiG) national payments system increased to 43 percent as of August this year.
The IMTT on ZiG-denominated payments was reduced from 2 percent to 1,5 percent in January this year, while transactions conducted in foreign currency remained subject to the 2 percent tax.
Introduced in October 2018, the IMTT reduction was among several resolutions implemented from last year’s ZANU PF Annual National People’s Conference held in Mutare.
The resolution sought to promote formalisation and banking by removing certain IMTT charges on transactions and reducing other bank fees.
It also aimed to make the ZiG more accessible, affordable, and attractive for domestic financial transactions, thereby promoting financial inclusion and strengthening monetary stability.
Speaking at the 23rd ZANU PF Annual National People’s Conference in Chinhoyi last week, Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube, who is also the ruling party’s Secretary for Science and Technology, said the Government would identify alternative revenue sources.
“Bank charges were reduced and banks have fully complied,” he said.
“IMTT was reduced for ZiG payments from 2 percent to 1,5 percent. The tax deductibility implies that the effective tax rate on corporates is lower than 1,5 percent and 2 percent on local currency and foreign currency transactions, respectively.
“Currently, consideration is in progress to further reduce IMTT while identifying alternative revenue sources that can close the revenue gap.”
According to Treasury, more than 70 percent of the revenue raised from the IMTT has been channelled towards infrastructure, health, education, and social safety nets, in line with the Government’s commitment to ring-fence the resources for social services.
Prof Ncube also stated that the Financial Intelligence Unit (FIU) would continue monitoring financial transactions to identify illegal currency dealings that may contribute to inflation and exchange-rate instability.
“The FIU has continued to carry out monitoring and analysis of financial transactions to identify illicit transactions, including illegal dealing in currency, corruption and other illicit transactions,” he added.
“Contractors and other beneficiaries of Government payments are also monitored and proactively engaged to ensure that they do not channel funds they receive to the parallel market. Thirteen companies were penalised for illegal foreign currency dealing during the period from April to June 2026. The illegal foreign currency dealing activities conducted by these companies were reported to the Financial Intelligence Unit (FIU) by a whistleblower.”
