Zimbabwean Finance Minister Mthuli Ncube maintains his stance against eliminating the 2% electronic transactions levy despite growing demands, including from fellow ZANU-PF members. He emphasized that this tax sustains essential government operations, particularly infrastructure development and past health initiatives. During a November 5 budget meeting in Bulawayo, Ncube warned removing it would create a fiscal shortfall, potentially requiring value-added tax increases. The levy contributed approximately 8% of national tax revenue through 2024.
The ruling party formally called for the tax's removal at its October conference, placing Ncube at odds with his own organization. While recognizing public frustration over daily transaction costs, he proposed adjusting rates as a compromise solution. Ncube suggested lowering the electronic levy by half a percentage point if value added tax rose equally. He stressed this approach could balance fiscal stability with taxpayer concerns while preserving critical funding streams. Officials have not yet finalized any policy adjustments.
The ruling party formally called for the tax's removal at its October conference, placing Ncube at odds with his own organization. While recognizing public frustration over daily transaction costs, he proposed adjusting rates as a compromise solution. Ncube suggested lowering the electronic levy by half a percentage point if value added tax rose equally. He stressed this approach could balance fiscal stability with taxpayer concerns while preserving critical funding streams. Officials have not yet finalized any policy adjustments.
