2 percent tax extended to forex transactions

Treasury has extended the Intermediated Money Transfer Tax, more commonly known as the 2 percent tax, to foreign currency transactions.

Earlier this year, Government legalised the use of the United States to transact alongside the local currency in a move aimed to unburdening the public in doing transactions following the emergence of Covid-19.

Announcing new revenue measures in the Mid-Term Budget Review yesterday, Finance and Economic Development Professor Minister Mthuli Ncube said the move to add hard currency transactions on IMMT was due to the preferred use of hard currency by most businesses, which was compromising the tax head.

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