The two cents per dollar tax that was announced by Finance Minister Mthuli Ncube on Monday will apply to transactions of $10 and above only and will be capped at $10 000 for transactions of above $500 000.
Ncube also said that the following transactions will be exempt from the proposed tax, which he said will only be implemented once the relevant regulations have been gazetted:
- Intra-company transfer of Funds including transfer from intermediary accounts;
- Transfer of funds on purchase and sale of equities;
- Transfer of funds on purchase and redemption of money market instruments;
- Transfer of funds for payment of salaries;
- Transfer of funds for payment of taxes;
- Transfer of funds to intermediary accounts, for example, conveyancers;
- Transfer of funds in respect of foreign currency related payments; and • Transfer of funds by Government.
The proposed tax has met stiff resistance from consumers who described it as robbery but Ncube said everyone must be involved in fixing the country’s battered economy.