Thursday 23 July 2020

FOREX TRADERS TO PAY TAXES IN FOREX, SAYS NCUBE


Government has come up with a legal instrument compelling traders selling goods and services in foreign currency to pay taxes in the currency in which they levy their customers, Senators heard yesterday.

Finance and Economic Development Minister Prof Mthuli Ncube said the proposed law would be presented before Parliament next week.

“We are dealing with that. That will be contained in the Finance Bill, which we are bringing to Parliament. The Bill will compel retailers and traders to pay taxes in currencies that they would have quoted for goods prices,” said Prof Ncube.

He was responding to Harare Metropolitan Senator Omega Hungwe who had asked what Treasury was doing to deal with such traders. 

Sen Hungwe said some retailers were issuing receipts reflecting Zimbabwean dollar on a transaction that would have been paid for in United States dollars.

Senators raised questions after Prof Ncube gave an overview about the Mid-Term Fiscal Policy Review that he presented in the National Assembly last week, while members of the Upper House were on recess.

Prof Ncube said the future of the country’s economy was bright given the several fiscal measures they have put in place that included the foreign currency auction system aimed at stabilising the local unit.

He said the country’s economy had shown great resilience, as it was still recording surpluses despite being ravaged by several misfortunes such as successive droughts, Cyclone Idai and Covid-19. 

“We have suffered some shocks. We have had several challenges, but we are still standing, so the future of our economy is bright,” said Prof Ncube. Herald

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