After clarion calls to abolish the controversial 2% tax by many people from all walks of life, its still the same story, the government doesnt yet want to get rid of it. However, its only going to review the tax to come up with more exemptions early next year. Presenting the 2019 National Budget, Finance Minister Professor Mthuli Ncube said;
Mr Speaker Sir, consultations made with stakeholders indicate the need to fine tune the transaction tax, with a view to ease the Cost of Doing Business. In this regard, I propose to provide for further exemptions, with effect from 1 January 2019.
The 2% tax, which was implemented as a way to increase the government’s revenue collection, was introduced last month during the presentation of the Monetary Policy Statement much to people’s anger. The first time the government heeded people’s backlash with regard to the 2% tax, it reacted by making some exemptions for the tax.