08 November 2019

The Zimbabwean government’s 2% tax on mobile money and electronic transactions will continue despite a High Court ruling in September against the legal instrument behind the levy.

The intermediate tax on all electronic transactions is part of austerity measures implemented by finance minister Mthuli Ncube to generate more revenue for the state. 

The Zimbabwe Lawyers for Human Rights (ZLHR) announced that High Court judge, Justice Zhou had set aside Statutory Instrument 205 of 2018 which had introduced the mobile money and electronic transactions tax. 

“High Court Judge Justice Zhou has set aside SI205/2018 on the 2% transaction tax. The case was argued by (former Finance Minister and opposition member) Tendai Biti,” the organisation said. 

The ruling states that “the Finance Regulations, 2018 which are contained in SI of 2018 are invalid and hereby set aside”. 

The implications of the ruling has triggered debate in Zimbabwe because parliament fast-tracked the promulgation of the Finance Act of 2019, which also makes provision for the tax. 

While Ncube has since confirmed the levy would remain in effect, Biti also said the government would use the Finance Act to defend its course of action.