Zimbabwe President says new tax necessary pain for recovery


Zimbabwe President says new tax necessary pain for recovery
FILE PHOTO: Zimbabwean President Emmerson Mnangagwa at a news conference at State House in Harare, Zimbabwe, Aug. 3, 2018. REUTERS/Philimon Bulawayo/File Photo

In Summary

  • The tax will apply on mobile and card payments and bank transfers above $10 with exceptions for foreign payments and transfer of government funds.
  • However business and citizens objected, saying they would be paying for the government's profligate spending.
  • Economic analysts said the tax would raise nearly $2 billion annually.

Zimbabwea President Emmerson Mnangagwa said a new tax on electronic payments was a painful but necessary part of the government’s attempts to revive the economy.

It is his first comments since the imposition of the levy last week sparked a public outcry.

After narrowly winning a disputed presidential vote in July, Mnangagwa is trying to put back on track an economy that all but collapsed under the near four decade rule of Robert Mugabe which ended after an army coup last November.

Finance Minister Mthuli Ncube on Oct. 1 announced the 2 percent tax, saying the money raised would be used in the roads, health and education sectors.

The tax will apply on mobile and card payments and bank transfers above $10 with exceptions for foreign payments and transfer of government funds.

However business and citizens objected, saying they would be paying for the government’s profligate spending.

Economic analysts said the tax would raise nearly $2 billion annually.

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