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At the center of these taxes was the intermediated money transfer tax (IMTT), which the ZNCC said must be removed
High taxes being piled on companies came under the spotlight this week in Zimbabwe, with the country’s biggest business lobbies slamming the state for clinging on to a regime that has “destroyed” enterprises.
In papers submitted to Finance Minister Mthuli Ncube ahead of the 2025 National Budget, which is expected in a few weeks, the Zimbabwe National Chamber of Commerce (ZNCC), the Bankers’ Association of Zimbabwe (BAZ) and the Confederation of Zimbabwe Retailers (CZR) called for complete reviews of the current taxation regime to relieve companies from pressures emanating from a tough business climate.
At the center of these taxes was the intermediated money transfer tax (IMTT), which the ZNCC said must be removed.
The government introduced IMTT about six years ago, hoping to bolster faltering revenues as de-industrialization escalated, affecting corporate tax. Other major tax heads like Pay-as-You-Earn have been affected by job losses.
Taxed at 2%, IMTT taps from electronic transactions, but it has been the subject of rebuke since its introduction, with some industrialists saying it was a form of double taxation. This week, the ZNCC said State revenues from IMTT were plummeting as markets found ways of avoiding the tax. Zimbabwe is rated as one of the most heavily taxed economies, and among the most expensive for doing business.
In January, the Confederation of Zimbabwe Industries (CZI) gave chilling details of how controversial taxes introduced in the 2024 budget could trigger the collapse of 35,000 small-scale firms.
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CZI warned that Zimbabwe’s biggest industries would not survive in the impending crisis, which it predicted would trigger the retrenchment of up to 38, 000 workers in only a few sectors.
