Zimbabwe industry on edge over 2% forex tax

Bankers have said the recently introduced 2% Intermediated Money Transfer Tax on foreign currency is inflationary and erodes the rising confidence in the local currency.

Bankers Association of Zimbabwe president Ralph Watungwa also said that the move was also likely to have the unintended consequence of fomenting the parallel market as some people would now avoid the official market to escape the tax.  

He also said it promotes the use of cash as opposed to electronic transactions.

Watungwa noted that bank systems must be upgraded to cater for the tax deduction.