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Govt To Penalise Companies For Failing To Pay Tax On Time, Says Mthuli Ncube

Govt To Penalise Companies For Failing To Pay Tax On Time, Says Mthuli Ncube

Finance and Economic Development Minister Mthuli Ncube has warned companies and banks that Treasury will soon penalise them for failing to remit the Intermediated Money Transfer Tax (IMMT) on time.

Speaking on Saturday in a wide-ranging interview with The Sunday News, Ncube said that although there has been a significant rise in domestic remittances, the increase is not being reflected in Treasury inflows because companies are delaying giving the government its IMMT on time.

Ncube said this is forcing the government to borrow in order to fund development projects. He said:

These delays then force Government to borrow through instruments such as Treasury bills so that we can fund development projects currently underway.

The delay in remitting taxes to Treasury by money transfer companies forces the Government to borrow through such instruments as Treasury bills to fund development projects.

But the problem with remittances due to Treasury is not unique to money transfer companies alone. Even banks are guilty of this.

Treasury through the Zimbabwe Revenue Authority (ZIMRA) is currently owed about US$6 million by banks in Value Added Tax remittances that they should pay to ZIMRA.

My Ministry will soon begin to penalise them if they hold onto funds due to Treasury for longer than necessary.

Proposed penalties will be twice what they should remit to Treasury if they delay.

Members of Parliament across the political divide recently rejected Ncube’s proposal to criminalise non-payment of taxes, saying civil penalties should remain in place.

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Nimrod 3 weeks ago

Gvt is always making threats. what kind of engagement is this?

The Prof4ED 3 weeks ago

They are happy to slaughter the cash cows. Threats are what they know best.

Tkt says 3 weeks ago

Haa ma1 aya, asi ko ivo vanenge vachimbo regerei kuripa zvaKESARI kuna KESARI nenguva yaka fanira yacho
Zvimwe zvacho kungoti nyika yakashata nepasina
If I've already sent my money mukaita deduct IMTT yacho then why not redirect it instantly towards ZIMRA
I think apa ZIMRA yacho ndiyo iku vata nezamu mkanwa

Nimrod 3 weeks ago

This is what happens with unpopular policies. policies should be consulted upon. lf you remember IMMT came via Statutory Instruments ( SI). SIs are dictatorial mechanisms of forcing down unpopular policies. These don't go via Parliament, but are forced on people by cabinet

Cde hondo 3 weeks ago

Muthuli yu are the problem... Your policies are anti poor

Mr Xx 3 weeks ago

Atanga munhu uya mutuvi akuda kubira mamoney changers Mari dzavo . Hapana nyika isina mamoney changers watadza the rako basa nanga nanga nerevamwe good policy will drive these traders from the streets

Ma1 3 weeks ago

Yet but the same govt has hold the payments to service providers...


dispenser 3 weeks ago

Next time we cld be hearing money changers are supposed to pay tax .

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