- Zimbabwe’s finance minister proposed reducing IMTT by 0.5% and increasing VAT by 0.5%, sparking debate.
- Some economists argue for removing IMTT entirely to support business growth and a pro-poor budget.
- Others see the shift as modernizing the tax system, moving from taxing money transfers to taxing consumption, with potential for revenue neutrality if market efficiency is achieved.
- Critics warn that IMTT is effective for fiscal stability and capturing informal sector revenue, while increasing VAT could raise consumer prices and reduce spending power.
Source: heraldonline.co.zw
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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