Mthuli Ncube cuts mobile money tax after widespread complaints

Finance minister Mthuli Ncube has succumbed to protests from the majority of Zimbabweans and made some concessions on a mobile and electronic money transfer in the country he announced Monday.
In a press statement Friday, Ncube said the tax would apply for mobile transactions valued at $10 and above.The maximum amount of tax that can be deducted on a transaction was also capped at $10 000.
Transfer of funds for the sale of equities and intra-company transfers would be exempted from the tax.
Transfer for the payment of salaries, taxes and intermediary accounts has also been exempted from tax.
Ncube announced this week that he would charge 2 cents for every dollar as mobile money transfer.
But the decision quickly courted the ire of many Zimbabweans and business leaders alike.
Ncube is under pressure to raise additional revenues for government and cover a $3.2 bn deficit government was financing through the issuance of government paper such as traesury bills.
This has seen government’s doemstic debt stock rising to unsustainable levels in the last three years.
The country’s debt stock is $17 bn. Of the $17bn, a total $10 bn is for domestic debt.