RBZ Slashes Withdrawal Charges

Government has ordered banks to scrap tax on transactions below $10. With immediate effect banks have been directed not to levy 5 percent tax on all transactions below $10.

This is a way of promoting financial inclusion under the Amendment of section 22B of Chap 23:04.

Government issued a gazette which reads:

“The Amendment of section 22B of Chap 23:04, ‘automated financial transactions tax’ of the Finance Act [Chapter 23: 04] is amended by the deletion of “for each transaction on which the tax is payable” and the substitution of “for each transaction exceeding Ten United States dollars on which the tax is payable.” Section 22G (Intermediated money transfer tax) of the Finance Act [Chapter 23:04] is amended by the deletion of “for each transaction on which the tax is payable and the transaction is exceeding Ten United States dollars on which the tax is payable.”

The Reserve Bank of Zimbabwe (RBZ) has since slashed bank cash withdrawal charges. The new charges were put at 1 percent of an amount withdrawn at an Automated Teller Machine (ATM) and 1.25 percent for withdrawals over the counter.