GOVERNMENT has categorically stated that the High Court ruling handed down this Wednesday that purportedly nullified the 2% electronic transfer tax gazetted in October 2018 will not suffice at law, Zim Morning Post has learnt.
In a statement,Finance minister Mthuli Ncube said that the judgement will not affect the tax collection because such was validated by Parliament.
“That judgement will not affect the collection of the tax under that Statutory Instrument 205/2018 was subsequently validated by Parliament under the finance Act No 1 of 2019.
“Consequently, the 2% tax will continue to be levied,” Ncube submitted.
He was responding to High Court Judge Justice Zhou on Wednesday which set aside SI 205/2018 on the 2% transaction tax in the case that was argued by former finance minister Tendai Biti.
The ruling follows an application by citizen one Mfundo Mlilo, who challenged the introduction of the 2% tax through Statutory Instrument 205 of 2018.
Mlilo argued that Ncube could not legally amend an Act via an SI. The tax has, however, since been enacted through the Finance Act of 2019.
The punitive 2% tax on electronic transactions was made into law in October last year as a brainchild of Finance minister Mthuli Ncube.
The law was gazetted as part of Transitional Stabilisation (TSP) that will run until 2020 which is aimed at widening government’s revenue collection.