2pct tax eats into OK Zimbabwe’s profit

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OK ZIMBABWE says the Treasury’s two percent intermediated money transfer tax (IMTT) is straining its profitability.
In its 2021 annual report that was released on Tuesday, the retail giant’s chairman, Hebert Nkala said the government should review the levy.
“The group continued to endure excessively during the year. The increase in the transaction thresholds had a dramatic impact on the competitiveness of the formal retail sector, drives inflation and undermines profitability and attractiveness of Zimbabwe as an investment destination,” he said.

The tax was introduced in October 2018 when the government launched its austerity programme the Transitional Stabilisation Programme (TSP) From the onset, the business community argued that the levy amounts to “double taxation”.