Mnangagwa to review Mthuli Ncube's 2% tax again

Mnangagwa to review Mthuli Ncube's 2% tax again
Published: 05 November 2018 (1121 Views)
President Emmerson Mnangagwa says he will soon revise again under-fire Finance minister Mthuli Ncube's controversial two cents per dollar transaction tax - which caused widespread panic in the country when it was introduced last month.

This comes after the Daily News accurately reported at the time that when Ncube announced his tax that he did not have Mnangagwa's approval then.

As it is, Ncube has already been forced to eat humble pie after he was forced to tweak the unpopular tax soon after he announced it - following a huge public backlash which saw panicking shoppers hoarding goods and prices of basic goods rising sharply.

Writing in his weekly column in State media yesterday, Mnangagwa said his government would soon review the two cents per dollar tax.

"Government took to heart the cry that the two percent transactional tax has compounded the tax burden for both business and for the consumer.

"Once the legal instrument we are crafting against unexplained wealth and deposits is in place, new measures will be announced to review the tax which, among other considerations, had been occasioned by illicit activities in the financial services sector," he said.

Recently, a civil society group petitioned the High Court seeking to have the tax declared illegal. However, the matter was ruled not urgent and will thus go on the normal court roll.

Ncube introduced the two cents per dollar tax as part of a raft of economic measures aimed at reviving the country's sickly economy.

"At the occasion of the presentation of the 2018 Mid-Term Monetary Policy, I announced a review of the Intermediated Money Transfer Tax from the current 5 cents per transaction to 2 cents per every dollar transacted.

"Further details pertaining to the tax are as follows: The 2 cents per dollar tax will apply on transactions of $10 and above only. Transactions below $10 will be exempt from this tax.

"There is a cap of $10 000 on the amount of tax to be paid. This implies that transfers above $500 000 will attract a flat tax of $10 000," he said as he released his revised measures.

Ncube also said internal company transfers, as well as transfers of salaries, tax payments, foreign currency-related payments and transfers of funds by the government would also be exempted from the new tax.

Yesterday, University of Zimbabwe political science lecturer Eldred Masunungure said developments of the past few weeks suggested that Ncube needed to "shape up" - otherwise, he would risk being forced to resign by the old guard in Zanu-PF "which he has no doubt angered".

"Mthuli is a technical expert. He has the skills to do the job, but ... given the vicious minefield he finds himself in, he is going to have a difficult time navigating the Zanu-PF politics.

"He is a novice in our brand of politics and he needs to sharpen his politics. But I don't think he will manage that.

"He either has to learn politics quickly or prepare to resign. I am not surprised that the two percent tax will now be revised," Masunungure told the Daily News.

Following his announcement of the tax, Ncube was forced to hold an emergency meeting with a concerned Vice President Constantino Chiwenga and Reserve Bank of Zimbabwe (RBZ) governor John Mangudya - leading to the release of the revised tax measures.

This came after Mnangagwa had apparently directed his deputy to look into the issue, which had created panic among long-suffering Zimbabweans - who swamped supermarkets buying anything they could lay their hands on, amid a rampaging parallel market where foreign currency rates had hit the roof.

Ncube's relationship with Zanu-PF hawks is said to be strained after they attacked him for rushing to announce the tax without consulting the former liberation movement's hierarchy.

- dailynews

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Zimbabwe tourism earnings surpass $1 billion

by Staff reporter | 19 February 2019 | 36 Views

TinTin suffers mental illness scare

by Mandla Ndlovu | 19 February 2019 | 62 Views

Letter to my friends in the MDC Alliance

by Nkosilathi Emmanuel Moyo, Sr | 19 February 2019 | 54 Views

'ZANU PF will be dead in 2028' says Jonathan Moyo

by Mandla Ndlovu | 19 February 2019 | 55 Views

PHOTOS: Top ZANU PF leader's body arrives

by Mandla Ndlovu | 19 February 2019 | 72 Views

Zimnat invites entries for Sanlam financial journalism award

by Staff writer | 19 February 2019 | 67 Views

MDC Bulawayo endorses Chamisa for Presidency

by Mandla Ndlovu | 19 February 2019 | 115 Views

Jonathan Moyo imposter calls Chamisa a biblical Moses.

by Mandla Ndlovu | 19 February 2019 | 158 Views

Chamisa, Mnangagwa MPs set tone for dialogue

by Staff reporter | 19 February 2019 | 156 Views

Former minister's children fight over estate

by Staff reporter | 19 February 2019 | 141 Views

$7bn needed for cleaner energy in Zimbabwe

by Staff reporter | 19 February 2019 | 69 Views

Man steal 'funeral' meat

by Staff reporter | 19 February 2019 | 108 Views

5 'Zacc officials' in trouble

by Staff reporter | 19 February 2019 | 99 Views

African Union and Sadc are spineless

by Pearl Matibe | 19 February 2019 | 84 Views

Serial burglar jailed 48 months

by Staff reporter | 19 February 2019 | 77 Views

Mliswa escalates fight against Nduna

by Staff reporter | 19 February 2019 | 100 Views

MDC legislator fumes over 'partisan distribution' of agric inputs

by Staff reporter | 19 February 2019 | 72 Views

Jailed robbers face fresh charges

by Staff reporter | 19 February 2019 | 73 Views

Zimbabwe inflation seen slowing down in October

by Staff reporter | 19 February 2019 | 68 Views

MDC councillor in court over violence

by Staff reporter | 19 February 2019 | 69 Views

Zimbabwean actor lands role in UK series

by Staff reporter | 19 February 2019 | 67 Views

SA civic groups blast Sadc over Zimbabwe rights violations

by Staff reporter | 19 February 2019 | 82 Views

Bulawayo extends water-rationing to 72hrs

by Staff reporter | 19 February 2019 | 63 Views

MDC chair denied access to detained party members

by Staff reporter | 19 February 2019 | 71 Views

Ginimbi's club Sankayi to shut down

by Staff reporter | 19 February 2019 | 61 Views

Tollgate scandal rocks Zinara

by Staff reporter | 19 February 2019 | 68 Views

Chamisa, Mnangagwa trade barbs

by Staff reporter | 19 February 2019 | 42 Views

'China has confidence in Mnangagwa'

by Staff reporter | 19 February 2019 | 39 Views

Matebeleland chiefs escalates their row with Mnangagwa

by Staff reporter | 19 February 2019 | 48 Views

Mnangagwa purges Chiwenga top allies

by Staff reporter | 19 February 2019 | 40 Views

Chamisa will not be challenged at the elective congress

by Staff reporter | 19 February 2019 | 35 Views

Mnangagnwa dismisses fake reports on tracking doctors and lawyers

by Staff reporter | 19 February 2019 | 107 Views

Mnangagwa ready to engage

by Staff reporter | 19 February 2019 | 40 Views

Mnangagwa's lawyer assaults MDC MP's lawyer in court

by ZimLive | 19 February 2019 | 50 Views

What type of forex trader are you?

by Staff Reporter | 19 February 2019 | 90 Views