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Zimbabwe Revenue Authority (ZIMRA) commissioner-general Mr Gershem Pasi intends to implore incoming Reserve Bank of Zimbabwe governor Dr John Mangudya to impose a tax on nostro accounts held by banks.Mr Pasi told a Parliamentary committee on Foreign Affairs last week that banks were keeping excess amounts in their nostro accounts contributing to the liquidity crunch in the economy.
“We realise banks through their nostro accounts are keeping huge sums of money than necessary to meet their obligations, therefore we shall submit to the incoming governor of the Reserve Bank of Zimbabwe that a redeeming method be considered in respect for the excess cash in the accounts.
“The extra money should be deemed to have made an interest so a tax should be imposed,” said Mr Pasi.
A nostro account is an account one bank holds with a bank in a foreign country, for the purposes of meeting its international commitments.
A senior banker who spoke on condition of anonymity said banks are forced to keep large amounts of money in the nostro account to facilitate the country’s burgeoning import bill.
The banker said the imposition of the tax would be akin to taxing a savings account.
“The country has become a net importer so money should sit in nostro account to complete the cycle of importation so the issue is not imposing a tax but resuscitating our productive capacity as a nation.
“If he (Dr Mangudya) heeds Mr Pasi’s call then he would have removed financial intermediation from the importation of commodities,” said the banker.
The banker said taxing nostro accounts would affect the country’s ability to attract lines of credit as the accounts were a point of reference and money was deposited in them to assist various sector of the economy. – FinX.
Peter Tanyanyiwa
Online Reporter