Government Agencies including Parastatals to collect fees in local currency as GoZ tries to control runaway inflation and dollarisation.
Embattled Minister of Finance Mthuli Ncube has introduced a raft of measures meant to curtail the runaway inflation rate and the subsequent dollarisation.
Among the measures, are a futile attempt to force government agencies including parastatals to accept payments in the local currency. Below is part of the statement from the Ministry:
Government wil implement the following measures as from 01 June 2023:
Treasury wil now fund the Zimbabwe Dollar component of the 25% foreign currency surrendered by exporters, in order to eliminate the creation of additional money supply. The foreign currency collected from the 25% that is surrendered, will now be collected by Treasury and utilised in servicing the foreign currency loans assumed from the Reserve Bank of Zimbabwe.
Banks will no longer withhold any foreign currency surrendered by exporters, and all the liabilities to the banks wil be settled through Treasury.
- Introduce a 1% tax on al foreign payments.
- Maintain the USD Cash withdrawal tax at 2%.
- Through Fidelity Gold Refinery, introduce a system to manage traceability of gold from its origin, both commercial and small scale, in line with international standards.
- All excise duty on fuel wil now be paid in foreign currency.
In order to encourage banking of foreign currency, which is mainly ni the informal sector, while promoting use of the local currency Government wil:
- Reduce the local interbank foreign transactions IMT tax to 1%;
- Reduce the POS IMT tax in foreign currency to 1%;
- Promotion of use of the domestic currency:
All Government Agencies including Parastatals will substantially now collect their fees in local currency.