Minister of Finance and economic development Mthuli has insited that the controversial 2% transaction tax will not be removed as it is a modern taxation instrument.
He was speaking at the AMH banks and banking survey 2018 which is organised Trevor Ncube’s Alpha Media Holdings.
“The 2% tax is a modern taxation instrument. It would be a mistake to reverse it.” Ncube said.
Ncube further emphasised that the citizens must think about their duty fees first when they are buying a car, “When you are buying your car think of the duty first.”
Ealier this month President Emmerson Mnangagwa said he will soon revise Ncube’s controversial two cents per dollar transaction tax – which caused widespread panic in the country when it was introduced last month.
This comes after it was reported that at the time that when Ncube announced his tax that he did not have Mnangagwa’s approval then.
Writing in his weekly column in State media , Mnangagwa said his government would soon review the two cents per dollar tax.
“Government took to heart the cry that the two percent transactional tax has compounded the tax burden for both business and for the consumer.
“Once the legal instrument we are crafting against unexplained wealth and deposits is in place, new measures will be announced to review the tax which, among other considerations, had been occasioned by illicit activities in the financial services sector,” he said.