Mthuli Ncube repeals cash ATM withdrawal tax

Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has scrapped the proposed foreign currency cash withdrawal levy, marking a major policy reversal during a marathon parliamentary session that ran into the early hours of Thursday.

The decision followed sustained pressure from lawmakers and the public, who warned that the proposed levy would "strangle" ordinary citizens and push more economic activity into the informal sector.

Under the Finance Bill, Treasury had initially proposed a tiered levy on foreign currency cash withdrawals, arguing that the measure would help curb money laundering and encourage the use of electronic payment systems.

However, the proposal triggered fierce opposition in the National Assembly, with MPs cautioning that it would disproportionately affect civil servants and low-income earners who depend on cash for everyday transactions.

Responding to the criticism, Professor Ncube told Parliament that Treasury had taken note of the concerns raised.

"I have listened to the argument. Treasury has been listening," he said.

The minister conceded that the levy risked becoming a "big penalty" that could discourage people from depositing their money into banks, undermining efforts to promote financial inclusion and formalise the economy.

As a result, Ncube formally moved to repeal Clause 7 of the Finance Bill in its entirety, effectively abandoning the proposed cash withdrawal tax.

"I have listened closely to the debate from Honourable Members and the public regarding the cash withdrawal levy proposals. Therefore, I hereby propose that we repeal that whole Clause 7. I thank you," he said.

The reversal was welcomed by MPs across the political divide and is expected to ease pressure on cash-dependent households and businesses, while removing a contentious provision from the 2026 Finance Bill.