Finance Minister Mthuli Ncube has adjusted his electronic transactions tax to exempt transfers below $10 and some business transactions.
On Monday, Ncube introduced a tax of 2 cents per dollar on electronic payments, which now make up as much as 99% of all transactions in the country.
Following an outcry, Ncube issued a statement late on Friday, exempting transactions below $10 from the tax, while payments above $500,000 will attract a flat $10,000 tax.
Also exempt are the following transactions:
- Intra-company transfers of funds, including transfers from intermediary accounts
- Transfer of funds on purchase and sale of equities
- Transfer of funds on purchase and redemption of money market instruments
- Transfer of funds for payment of salaries
- Transfer of funds to intermediary accounts, for example, conveyancers;
- Transfer of funds in respect of foreign currency related payments; and
- Transfer of funds by Government
