Online Reporter
Debra Matabvu-Senior Reporter
A COMBINATION of tax relief measures and reduced bank charges has led to increased use of the Zimbabwe Gold (ZiG) by individuals and corporates across the country, Finance, Economic Development and Investment Promotion Permanent Secretary Mr George Guvamatanga has said.
This comes at a time when the Second Republic, led by President Mnangagwa, is in the middle of a broader economic transformation agenda aimed at stabilising the local currency, expanding access to payments infrastructure and improving the efficiency of trade and investment flows.
Mr Guvamatanga said measures such as the reduction of the Intermediated Money Transfer Tax (IMTT), the introduction of a corporate tax deduction for IMTT, and lower bank charges had increased the share of ZiG transactions to 45 percent in May this year, up from 43 percent in 2025.
He also attributed the growing use of the ZiG to improved exchange rate stability, supported by rising foreign currency reserves, which now stand at US$1.6 billion and the willing-buyer willing-seller foreign exchange market, which has reduced reliance on the parallel market.
Responding to questions from The Herald, Mr Guvamatanga said the tax relief had reduced the cost of doing business for companies operating in the local currency, encouraging wider use of the ZiG.
“The cost of electronic transactions has been a major pain point for economic agents transacting in ZiG,” Mr Guvamatanga said.
“Economic agents have welcomed the reduction of IMTT for ZiG transactions
“In addition to the reduction of the IMTT, Government also introduced a corporate tax deduction for IMTT where tax-compliant corporates can subtract their IMTT payments from their income tax obligations.
“The tax relief for companies is important as it reduces the cost of doing business for corporations operating in local currency, important for boosting economic activity.
He also said the introduction and issuance of the new upgrade ZiG banknotes through Automated Teller Machines (ATM) by various banking institutions have also increased the physical use of the local currency.
“The Reserve Bank has also complemented Government efforts to reduce transaction costs by reviewing a range of bank charges and fees,” he added.
“The specific measures include: i. reduction in RTGS charges for banks, reduction in cash withdrawal charges, reduction of the Point of Sale (POS) charges, removal of account balance inquiry charges, removal of fees on cash deposits for both ZiG and US$.
“A combination of the reduction of IMTT and bank charges has seen increased use of ZiG in the economy.
“National payment system transaction data shows that the share of ZiG transactions in total transactions is currently ranging between 35-40 percent.
“The proportion of ZiG transactions peaked at around 45 percent in May 2026 during the height of the agricultural marketing season.
“Notably, all banking institutions have been issuing the new Upgrade ZiG Banknotes through ATMs, thereby supporting increased use of physical ZiG cash in the economy.”
Mr Guvamatanga added that the business community has increasingly embraced the use of the ZiG, with most companies now accepting payments in both ZiG and the US dollar.
He also said the Government’s directive requiring certain taxes and 50 percent of Quarterly Payment Dates (QPDs) to be made in ZiG has sustained demand for the local currency while reducing discriminatory pricing practices.
“Following increased stability in the economy, the Reserve Bank has seen increased transactions being settled in ZiG,” he added.
“Specifically, monitoring by the Financial Intelligence Unit (FIU) has shown that most companies are now accepting payments in both ZiG and US dollar.
“Importantly, there has been a reduction in discriminatory pricing practices where businesses were using a more depreciated exchange rate to price goods in ZiG.
“The directive by Government for ZIMRA not to accept the payment of certain taxes exclusively in US dollars and 50:50 Quarterly Payment Dates (QPDs) has helped in sustaining the demand for ZiG in the economy.
“Precisely, the rationale for the directive was to create guaranteed and sustained demand for ZiG in the economy.
“As a result, this measure has compelled businesses to accept payments in ZiG in order to meet their tax obligations, thereby improving the ZiG’s function as a medium of exchange. The Reserve Bank has noted a significant upsurge in demand for ZiG towards the QPDs.”
