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.