The government is looking at cutting the Intermediated Money Transfer Tax (IMTT) again, the tax charged on electronic payments, Finance Minister Mthuli Ncube has said. No new rate and no start date have been announced.

"Currently, consideration is in progress to further reduce IMTT while identifying alternative revenue sources that can close the revenue gap," Ncube told the ZANU PF annual conference in Chinhoyi last week, as quoted by The Herald and NewZimbabwe.

Where the rates stand now

1.5% on payments in ZiG. This was cut from 2% in January.

2% on payments in foreign currency, which is unchanged.

Ncube said banks had complied with earlier orders to cut their charges. Because IMTT is tax-deductible, he said, the effective rate paid by companies is lower than those headline figures.

Why it matters

Both outlets cite Treasury figures showing that 43% of transactions on the national payments system were settled in ZiG by August, and that more than 70% of IMTT revenue has gone to infrastructure, health, education and social protection. That is the money the government says it needs to replace before it can cut the tax further.

The tax was introduced in October 2018. Last year's cut followed a resolution at the 2025 ZANU PF conference in Mutare, the reports say.

How we got here

IMTT was introduced in October 2018 at 2%, replacing a flat charge of 5 cents per transaction, according to tax briefings from BDO and KPMG published at the time.

The January cut was announced in the 2026 National Budget on 27 November 2025. In the budget speech, published by the Treasury, Ncube said the lower ZiG rate was meant "to promote use of local currency and lower transaction costs". To make up part of the lost revenue, he raised VAT from 15% to 15.5% from 1 January 2026, the speech says and The Herald and NewsDay reported.

Ncube told Parliament then that IMTT contributes "about 8 percent of total tax revenue annually", but that its weight on business transactions had made it "distortionary, particularly in a dual currency environment", The Herald reported. That is why any further cut comes with the search for other revenue.

Forex crackdown

Ncube also said 13 companies were penalised for illegal foreign currency dealing between April and June 2026, after a whistleblower alerted the Financial Intelligence Unit. He said contractors and others paid by the government are being monitored so the money does not end up on the parallel market (The Herald, NewZimbabwe).

What we don't know yet

What the new rate would be, or when it would take effect.

Whether the forex rate of 2% would also come down.

Which "alternative revenue sources" would fill the gap.

Sources: The Herald (Debra Matabvu), 20 Oct 2026, via Zimbabwe Situation: https://www.zimbabwesituation.com/news/govt-mulls-further-imtt-reduction/ · The Herald on X, 20 Oct 2026: https://x.com/HeraldZimbabwe/status/2112400953592721587 · NewZimbabwe (James Muonwa), 20 Oct 2026: https://www.newzimbabwe.com/treasury-mulls-further-cut-on-electronic-transaction-tax/ · 2026 National Budget Speech, Treasury, 27 Nov 2025: https://zimtreasury.co.zw/wp-content/uploads/2025/11/The-2026-National-Budget-Speech-27-11-25.pdf · The Herald: https://www.heraldonline.co.zw/treasury-cuts-zig-imtt-rate-to-15pc-hikes-vat-by-05pc/ · NewsDay: https://www.newsday.co.zw/local-news/article/200049048/government-hikes-vat-to-155 · BDO, Feb 2019: https://www.bdo.global/en-gb/microsites/tax-newsletters/corporate-tax-news/issue-50-february-2019/zimbabwe-amendments-to-the-income-tax-act-and-introduction-of-new-transfer-pricing-regulations · KPMG, Nov 2018: https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2018/11/tnf-zimbabwe-nov28-2018.pdf