New tax ‘threatens’ activity on the ZSE

THE introduction of a capital gains tax (CGT) of 40 percent on the Zimbabwe Stock Exchange (ZSE) will slow down activity on the market, analysts have warned.
The government raised capital gains withholding tax from two percent to four percent in May as part of measures to restrict speculative activity on the local bourse, which they claimed was driving inflation.

The government has since doubled down on this, introducing a 40 percent CGT on securities sold on the ZSE within 180 days of purchase.
“The ZSE wishes to notify stakeholders that we are in receipt of a correspondence dated October 28, 2022 from the ministry of Finance stating the capital gains withholding tax and capital gains tax on the ZSE,” chief executive Justin Bgoni said last week in a