OneMoney last week advised its customers that transactions now attract a tax of 2 cents per dollar effective 13 October 2018 as per the Rate and Incidence of Intermediated Money Transfer Tax Regulations of 2018.
Kindly note the below OneMoney tariffs that have taken effect as of 13 October 2018 pic.twitter.com/uMbuJgqhiR
— NetOne Cellular (@NetOneCellular) October 15, 2018
The 2 cents tax per dollar has been received with mixed feelings after a number of banks advised its customers to take note of the tax.
A general notice published in the Government Gazette under Statutory Instrument 205 of 2018 gave effect to the new tax, which is part of Finance minister Mthuli Ncube's fiscal measures aimed at reversing imbalances in the country's economy.
It also directs financial institutions, the Zimbabwe Revenue Authority (Zimra) and telecommunication companies to extend the collection to all electronic transactions.
The two cents per dollar tax will not apply on transactions which are $10 or less.
There is a cap of $10 000 on the amount of tax to be paid, which means that transfers above $500 000 will attract a flat tax of $10 000.
In addition, the tax will not apply to a range of other transactions namely;
• Transfer of funds by government;
• Transfer of money for the purchase or sale of marketable securities;
• Transfer of money for the purchase or redemption of money market instruments;
• Transfer of money on payment of remuneration;
• Transfer of money to or from Zimra for the payment or refund of any tax, duty or other charges;
• Intra-corporate transfer of money, that is to say, transfer of money between the treasury account and any trading account held in the name of the same company;
• Transfer of money from (but not into) specified accounts;
• Transfer of money into and from nostro foreign currency accounts."
• Transfer of money by government from the Consolidated Revenue Fund,
• Transfer of money for procurement of fuel by a petroleum company licensed in terms of the Petroleum Act
