Banks scrap tax on transactions below $10

Banks scrap tax on transactions below $10
Published: 30 January 2018 (652 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 The new charges were put at 1 percent of an amount withdrawn at an Automated Teller Machine (ATM) and 1.25 percent for withdrawals over the counter.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

Looting soldier shot during protests

by Mandla Ndlovu | 17 January 2019 | 195 Views

How drug offences can affect your life

by Staff Reporter | 17 January 2019 | 52 Views

Zimbabweans march to ANC headquaters over Mnangagwa

by Mandla Ndlovu | 17 January 2019 | 120 Views

Mnangagwa meets Belarus President

by Staff reporter | 17 January 2019 | 56 Views

Who used the extra 480 million litres of fuel the last six months?'

by Staff rpeorter | 17 January 2019 | 101 Views

Mnangagwa signs 8 MOUs in Belarus

by Staff reporter | 17 January 2019 | 59 Views

Govt meets transporters over fares

by Staff reporter | 17 January 2019 | 73 Views

Military in civilian life: lessons from the fall of Mugabe

by The Source News Agency | 17 January 2019 | 56 Views

'Zimbabwe potential hub for industrial development in Africa'

by Staff reporter | 17 January 2019 | 48 Views

ZRP heightens crackdown against criminals

by Staff reporter | 17 January 2019 | 41 Views

Zimbabwe counts huge costs of stay-away

by Staff reporter | 17 January 2019 | 34 Views

Zesa dismisses social media messages

by Staff rpeorter | 17 January 2019 | 47 Views

Gun-wielding soldiers assault Daily news staff

by Staff reporter | 17 January 2019 | 46 Views

Mnangagwa's re-engagement efforts with Western countries is dead

by Staff reporter | 17 January 2019 | 51 Views

Police should probe vandalism, looting

by Staff reporter | 17 January 2019 | 43 Views

Military door-to-door raids slammed

by Staff reporter | 17 January 2019 | 47 Views

Trial of 'Shut-down' protesters fast-tracked

by Staff reporter | 17 January 2019 | 41 Views

'Internet shutdown draconian'

by Staff reporter | 17 January 2019 | 41 Views

MDC Alliance's Chibaya remanded in custody

by Staff reporter | 17 January 2019 | 27 Views

How to win at slots? Top slot tips & tricks

by Staff Reporter | 17 January 2019 | 53 Views

Stay away: A manifestation of the MDC's violence DNA

by Nobleman Runyanga | 17 January 2019 | 92 Views

Kirsty Coventry has not resigned from ministry

by Mandla Ndlovu | 17 January 2019 | 99 Views

Mnangagwa and Gen Chiwenga responsible for lootings, shootings and terrorism

by Dr Nkululeko Sibanda (Presidential Spokesperson) | 17 January 2019 | 122 Views

A tale of a school teacher

by Virimayi Chidembo | 17 January 2019 | 90 Views

My encounter with the rowdy protestors

by Betty Gatsi | 17 January 2019 | 64 Views

Price of bread now $6

by Mandla Ndlovu | 17 January 2019 | 111 Views

The unleashing of army to descend on demonstrators was uncalled for

by Leonard Koni | 17 January 2019 | 52 Views

How Facebook and Whatsapp fuelled chaos and confusion in Zimbabwe

by Dr Masimba Mavaza | 17 January 2019 | 53 Views

Mnangagwa pleased with Putin meeting

by Staff reporter | 17 January 2019 | 132 Views

Mnangagwa opens consulate in Belarus

by Staff reporter | 17 January 2019 | 144 Views

MDC perpetrating violence, violating human rights

by Anesu Pedzisayi | 17 January 2019 | 135 Views

3 Religious Sites to Visit When in Israel

by Staff Reporter | 17 January 2019 | 92 Views

BREAKING: Evan Mawarire charged with treason

by Mandla Ndlovu | 17 January 2019 | 232 Views

'100 men abaducted in Matabeland during protests'

by Mandla Ndlovu | 17 January 2019 | 138 Views

Army continues terror as Bulawayo is shutdown

by Mandla Ndlovu | 17 January 2019 | 295 Views

Here's what motorists are paying for fuel around the world

by wheels24 | 17 January 2019 | 233 Views

Bond notes and their possible long-term legacy

by Staff reporter | 17 January 2019 | 160 Views