Zimbabwe is preparing to start introducing a tax for mobile money agencies. The proposed tax, according to Mthuli Ncube, Zimbabwe's Minister of Finance, will be levied on transactions and the transfer of money from mobile money agents to their customers.
Ncube announced this during his recent mid-term 2019 fiscal review for Zimbabwe.
"However, cash-in and cash-out transactions conducted through mobile money transfer platforms do not fall within the above criterion hence the tax is not deductible. I, therefore, propose to levy a tax on the transfer of money from mobile money transfer agents to recipients," said Ncube.
Part of the argument presented by Ncube for wanting to introduce a new mobile money transfers related tax is that, allegedly, many illegal foreign money transfer and currency transactions and deals are conducted via the cash-in and cash-out facility available on mobile money services. As a result, Ncube also believes that many people use this modus operandi to avoid paying tax.
Zimbabwe already has a tax for mobile money transfers known officially as the Intermediate Money Transfer Tax (IMTT). Introduced in 2018, the tax deducts 2 cents for every dollar transacted.Share this via: