Banks scrap tax on transactions below $10

Banks scrap tax on transactions below $10
Published: 30 January 2018 (579 Views)
GOVERNMENT has, with immediate effect, directed banks not to levy 5 percent tax on all transactions below $10 as a way of promoting financial inclusion. This comes as Government moves to provide safety nets to cushion vulnerable people and allow them to transact freely. Banks heeded Government's call to remove the $0, 05 tax on transactions below $10.

In a gazette last week, the Government said: "The Amendment of section 22B of Chap 23:04, ‘automated financial transactions tax' of the Finance Act [Chapter 23: 04] is amended by the deletion of "for each transaction on which the tax is payable" and the substitution of "for each transaction exceeding Ten United States dollars on which the tax is payable."

"Section 22G (Intermediated money transfer tax) of the Finance Act [Chapter 23:04] is amended by the deletion of "for each transaction on which the tax is payable and the transaction is exceeding Ten United States dollars on which the tax is payable."

Steward Bank CEO, Dr Lance Mambondiani, told The Herald that the removal of the 5 cents tax will go a long way in promoting financial inclusion. "For a long time, we have been in negotiations with the Government to scrap that 5 cents tax for any amount less than $10 and finally the authorities had paid heed to our appeals. This will certainly make waves in promoting financial inclusion as banking products are becoming more and cheaper to our people.

"This may be the other way of encouraging the unbanked public to start banking as this beat all mobile payments platforms, which charge a certain fee for every transaction made. As time goes on, this will make those who do not want bank accounts to have one."

Meanwhile, the Reserve Bank of Zimbabwe (RBZ) has since slashed bank cash withdrawal charges following an outcry from members of the public. The new charges were put at 1 percent of an amount withdrawn at an Automated Teller Machine (ATM) and 1.25 percent for withdrawals over the counter.

Against this background and as part of ongoing efforts to promote financial inclusion and to ensure that banking products and services are affordable to the banking public, RBZ reviewed cash withdrawal charges downwards. RBZ continued to monitor the cost of bank charges to ensure access to affordable banking services and at the same time promoting the use of plastic money.

- The Herald

Tags: Banks, Govt, Tax,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Tesla pfee in Zimbabwe

by Staff reporter | 20 October 2018 | 156 Views

Zimbabwean student use the old trick to get asylum in Ireland

by Staff reporter | 20 October 2018 | 178 Views

Joram Gumbo must leave office and face justice

by MDC Communications | 20 October 2018 | 151 Views

Zimbabwe teachers demand salaries in US$

by newzimbabwe | 20 October 2018 | 236 Views

'Chamisa's Alliance plotted a coup against Mnangagwa'

by Staff reporter | 20 October 2018 | 268 Views

Demand for Indian sex sweets rises

by Staff reporter | 20 October 2018 | 258 Views

'Chamisa won't be contested at congress' - no vacancy in MDC presidium

by Staff reporter | 20 October 2018 | 197 Views

Mthuli Ncube calls for political reforms

by Staff reporter | 20 October 2018 | 211 Views

Mnangagwa's minister exposed charging in USD refuses Bond notes

by Staff reporter | 20 October 2018 | 174 Views

Zimsec engages Deloitte And Touch over exam leaks

by Staff reporter | 20 October 2018 | 140 Views

The White Man who sent fear down Mugabe's spine

by Globe and Mail | 20 October 2018 | 134 Views

Human rights violations down in Zimbabwe

by Stephen Jakes | 20 October 2018 | 108 Views

Mliswa pleads with Finance minister to see importance of MPs vehicles

by Stephen Jakes | 20 October 2018 | 114 Views

Zimbabwe business are mercenaries out to loot the poor: MDC legislator

by Stephen Jakes | 20 October 2018 | 122 Views

Electric Tesla car causes stir on Zimbabwe social media

by Staff Reporter | 20 October 2018 | 127 Views

Zimbabwe army officers warned

by Staff reporter | 20 October 2018 | 154 Views

Biti savages Mthuli Ncube

by Staff reporter | 20 October 2018 | 115 Views

Zanu-PF backers justify army use of deadly force

by Staff reporter | 20 October 2018 | 123 Views

Zimbabwe tax system hit by low compliance levels

by Staff reporter | 20 October 2018 | 74 Views

Price controls, tinkering with the deck while the titanic is sinking

by Jacob Mafume, MDC National Spokesperson | 19 October 2018 | 233 Views

Man nearly killed over cooking oil

by Simbarashe Sithole | 19 October 2018 | 211 Views

Mnangagwa closing in on unscrupulous businesspeople

by Staff reporter | 19 October 2018 | 230 Views

Prophet sells congregant's vehicle

by Staff reporter | 19 October 2018 | 195 Views

Zanu-PF's Dexter Nduna confirmed Chegutu West MP

by Staff reporter | 19 October 2018 | 140 Views

Mnangagwa caps 1719 graduands

by Staff reporter | 19 October 2018 | 118 Views

ZCTU calls for resignation of Minister Gumbo

by Stephen Jakes | 19 October 2018 | 286 Views

Mnangagwa has to deliver and, urgently too

by Staff reporter | 19 October 2018 | 318 Views

Zanu-PF dictatorship, ideological dominance

by Vivid Gwede | 19 October 2018 | 241 Views

ZCTU, why spare Bulawayo council over rates hike

by Conway Tutani | 19 October 2018 | 220 Views

Motlanthe Commission risks playing into Zanu-PF agenda

by Staff reporter | 19 October 2018 | 229 Views

Councils challenged to generate own income

by Staff reporter | 19 October 2018 | 159 Views

Zimbabwe gender parity misses 50% mark, says Mohadi

by Staff reporter | 19 October 2018 | 119 Views

Zanu-PF official, sangoma jailed over pangolin scales

by Staff reporter | 19 October 2018 | 185 Views

Mliswa mocks Gender Commission

by Staff reporter | 19 October 2018 | 170 Views

Police harass senior Masvingo journalist

by Stephen Jakes | 19 October 2018 | 153 Views

Zimbabwe gold exports decline by 21%

by Staff reporter | 19 October 2018 | 176 Views