2 Percent Tax
The Intermediated Money Transfer Tax (IMMT), commonly known as the 2% tax is a tax on all electronic transactions introduced by the government in October 2018. The tax was part of measures by the then-new Finance Minister Mthuli Ncube to increase government revenue and combat fiscal deficits. The tax was implemented using Statutory Instrument SI 205/2018.
By January 2019 the government was collecting nearly $100 million a month.[1]
Downloads
SI 205/2018 Amendments to Finance Act & Income Tax Act
September 2019 High Court Ruing On Legality
On 18 September 2019, High Court Judge Justice Zhou has set aside SI 205/2018 after a court case in which, Mfundo Mlilo challenged its lawfulness. The respondent in the case was the Finance minister Mthuli Ncube and the case was being argued by Tendai Biti.
In response to the judgment, Ncube said the judgment had been overtaken by events as an act had already been passed by parliament on the tax:
That judgment will not affect the collection and levy of the Intermediated Money Transfer Is because the collection of the Tax under that Statutory Instrument 205/2018 was subsequently validated by Parliament under the Finance Act No. 1 of 2019.[2]
References
- ↑ Taurai Mangudhla and Blessing Madziwanzira, IMMT being put to good use, says Govt, Business Times, Published: 22 July 2019, Retrieved: 18 Sep 2019
- ↑ FULL TEXT: Treasury Responds To High Court Judgement On 2% Tax. Pindula News, Published: 18 Sep 2019, Retrieved: 18 Sep 2019
