Mahere slams proposed cash withdrawal tax, warns of banking system fallout

HARARE – Prominent lawyer and opposition politician Fadzayi Mahere has criticised the Treasury’s proposal to introduce a progressive tax on cash withdrawals, warning that the move could discourage use of formal banking systems and fuel money laundering.


In a strongly worded post on her official Facebook page, Mahere questioned the rationale behind taxing cash withdrawals when Zimbabweans already face high bank charges.

“Why are you introducing a tax for withdrawing cash when bank charges are already so extortionate?” she wrote, addressing Finance Minister Mthuli Ncube. “Can you not see that you’re going to disincentivise use of the banking system?”

Mahere argued that in functional economies, banking earns interest, but in Zimbabwe, citizens are penalised for using formal channels. She also accused political elites of bypassing banks altogether.

“We know that fat cats and political elites don’t bank money at all. Do you not see them dishing out piles of cash every day?” she added. “You’re creating a haven for money laundering.”

Her remarks follow the release of a budget proposal that includes a progressive levy on monthly cash withdrawals, with rates ranging from 0% to 3% depending on the amount and category (individual or corporate). The stated aim is to discourage excessive cash use, enhance transparency, and promote digital payments.

Mahere’s post has sparked debate online, with many echoing concerns about the impact on small businesses, informal traders, and ordinary citizens who rely on cash for daily transactions.

She concluded her post with a call for political renewal, stating: “We need new leaders.”