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'2% tax collection not affected'

by Staff reporter
18 Sep 2019 at 18:42hrs | Views
The Finance and Economic Development Ministry has issued a statement stating that the High Court judgment suspending the two percent tax on electronic transactions will not affect the collection and levy of the intermediated money transfer tax.

In the statement, Professor Mthuli Ncube said it is because the collection of the tax under the Statutory Instrument 205/2018 was subsequently validated by parliament under the Finance Act No 1 of 2019.

This effectively means that the two percent tax will be levied.

The two percent tax was introduced on 1 October 2018 by Finance and Economic Development Minister, Professor Mthuli Ncube under the Transitional Stabilisation Programme (TSP).

The High Court this Wednesday upheld the application to suspend the two percent tax on electronic transactions introduced by the government last year.
The ruling follows a challenge of the two percent tax at the High Court by the Executive Director of the Combined Harare Residents Association, Mfundo Mlilo who was represented by Tendai Biti.

In his application, Mlilo said government’s decision was made without the necessary backing of the law, in particular the amendment of the Income Tax Act.

Source - zbc