A TAX meant to widen the formal economy is instead fuelling concerns that businesses and consumers are being pushed back towards cash, as the cost of digital transactions comes under renewed scrutiny. In the 2026 national budget, Finance minister Mthuli Ncube cut the intermediated money transfer tax (IMTT) on ZiG transactions to 1,5 percent from…
IMTT pushes business back to cash
The IMTT has been “burdensome” for consumers and businesses, although authorities maintain that it is necessary to support government revenues. Economist and chief adviser to the minister of Finance, Professor Ashok Chakravarti, said the upcoming budget process provided an opportunity for businesses and other stakeholders to make their views on the tax known.