The Reserve Bank of Zimbabwe (RBZ) has revised the terms for mandatory retentions on USD Point of Sale (POS) and e-commerce settlements.
In a statement seen by Pindula News, Nedbank told its clients that the central bank had directed that the tourism sector was no longer exempted from mandatory retentions. Reads the statement issued on 28 March 2023:
Dear Valued Client.
EXCHANGE CONTROL DIRECTIVE RY002-2023 DATED 3 FEBRUARY 2023: MANDATORY RETENTIONS ON USD POS AND E-COMMERCE SETTLEMENTS
Further to the abovementioned Directive, the Reserve Bank of Zimbabwe has revised the terms for mandatory retentions on USD POS and E-Commerce settlements in respect of the tourism sector.
To this end, the tourism sector is no longer exempt from mandatory retentions with effect from 6 February 2023. As such, the Bank shall be mandated to surrender to the Central Bank export Retentions on Export and Domestic sales as follows: –
• 25% Retention on POS settlements acquired from foreign-issued cards.
• 15% Retention on POS settlements on transactions issued by domestic cards
Kindly be advised that the Bank shall be collecting the Retentions in retrospect (at the prevailing interbank market rate on the day of the transaction), dating back to 6 February 2023.
In need of further clarity, kindly contact your respective Business Manager, SME Banker, or Branch Manager.
The RBZ announced last year that players in the tourism and hospitality industry shall retain 100% of their foreign currency earnings.
This was meant to allow them to quickly recapitalise and procure the necessary goods and services required by tourists and travellers, said RBZ governor John Mangudya in his Monetary Policy statement of 7 February 2022.
Mangudya said this was a measure in response to the adverse effects of COVID-19 on the tourism sector, which was hard hit by the pandemic.