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Banks raid clients’ accounts over 2% money transfer tax

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LOCAL banks will collect two years’ worth of the mandatory 2% intermediated money transfer (IMT) tax from its clients over the next three months, a move that is set to unsettle its clientele base and worsen their bleak Christmas prospects.
The new directive is expected to put a further strain on individual and business clients, most of them already reeling under the effects of a Covid-19 global pandemic which hit hard economies, companies and people.
The IMT tax is collected in terms of Section 36G as read with the Thirtieth Schedule of the Income Tax Act [Chapter 23:06]. It has been in place since 2003 and an amendment was made by Statutory Instrument 205 of 2018 on 12 October 2018 and effective from 13 October 2018.
The major change is on the rate of tax and exemptions of certain transactions from the tax.
Banks sent out messages notifying clients of the move. Standard Chartered Bank, for instance, notified its clients on that. But The NewsHawks understands other banks have also done the same.
The recovery of uncollected IMT tax has been earmarked for Zimswitch and mobile banking facilities.
“Please be advised that we shall be recovering uncollected 2% IMTT for Zimswitch and mobile banking transactions done from your account between 1 November 2018 to 1 November 2020,” Standard Chartered head of retail banking Lucas Chirume told clients in a circular.
Clients will not be required to action the deductions which commenced on 27 November.
“Processing shall be done over a period of three months depending on the amount until we have fully recovered,” he said.
 – STAFF WRITER

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