It is true, FBC to backdate collection of 2% tax for all transactions done since August

Claim: FBC bank will be backdating collection of the 2% Intermediated Money Transfer Tax

Verdict: True 

Source: A message circulating on social media. “The FBC Bank has announced that in line with new Finance Act No.8 of 2020, the bank will be backdating collection of the 2% Intermediated Money Transfer Tax (IMMT) on all applicable foreign currency and ZWL transactions made from 01/08/2020,” read the message.

Full story: The Intermediated Money Transfer Tax  (IMMT) came into effect on October 13, 2018  after it was gazetted in Statutory Instrument 205 of 2018. IMMT is commonly known as the 2 percent tax. 

Announcing the Mid- term budget review in July, Finance and Economic Development Minister Mthuli Ncube  had said the  move to add hard currency transactions on IMMT  was due to preferred use of hard currency by most businesses which was compromising the tax head.

 Contacted for a comment, the Acting Head, Group Marketing FBC Holding Limited, Roy Nyakunuwa confirmed the message saying the FBC Bank Limited issued a customer notice to advice its clients regarding the implications of the Finance Act No.8 of 2020 which was gazetted on 29 October in as far as client transactions are concerned. 

“The Finance Act No.8 of 2020 makes specific mention that the 2% IMTT tax deduction is effective from 1 August 2020 notwithstanding the fact that the Finance Act No.8 of 2020 was gazetted on 29 October 2020. 

“Therefore, the bank and Building society are required by this law to implement the deduction of the aforesaid tax retrospectively or tracing transactions done from 1 August to date which require the deduction of 2 percent tax and remittance of the funds to Zimbabwe Revenue Authority (ZIMRA),” said Nyakunuwa. 

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