RBZ Clampdown On Mobile Money Erodes IMTT
The Zimbabwe Revenue Authority (ZIMRA) has said the Intermediated Money Transfer Tax (IMTT), popularly known as 2c tax, contributed only 6.63% to revenue in the fourth quarter of 2020.
This comes after the Reserve Bank of Zimbabwe (RBZ) curtailed the operations of mobile money transfer services in the second quarter, which among other things included a ban on mobile money agents and a $5000 cap on mobile money transfer per day.
In its 2020 fourth-quarter performance report issued at the weekend, ZIMRA said:
The Intermediated Money Transfer Tax performed below target and only contributed 6.63 per cent to the quarterly revenue.
Monetary policy measures instituted in Q2 2020 have continued to impact negatively on the tax head as activity is limited on mobile money platforms, which had become a haven for parallel market activities.
The RBZ clamped down on mobile money transfer services following the alleged wanton abuse of mobile money platforms by some agents who had turned them into a haven for speculative illegal forex dealings which in turn pushed up the exchange rate.