Business Reporter
ZIMBABWE has instituted further measures to promote the usage of the ZW$ which are poised towards boosting the currency’s demand .
Since the eruption of an exchange rate shock wave in the markets last month, authorities in Harare have been working flat out to save the ZW$ from collapse.
To that end the rapid ZW$ depreciation which had choked the local currency’s stability seems to be easing off in the recent weeks.
Announcing additional measures Friday, authorities moved to order much wider usage of the ZW$ in the economy.
“Government will, for June 2023 Quarterly Payment Date (QPD) , require taxpayers to setlle 50% of the foreign currency portion of their corporate tax obligations in local currency.
“Where the law requires the tax liability to be paid in local currency , taxpayers are compelled to pay such tax obligations exclusively in local currency .Government will therefore not accept payments in US$ or any other foreign currency for the portion of corporate income tax due in local currency for the June QPD,” said Treasury in a statement.
The Finance Ministry also said that tax payers without adequate ZW$ to meet the local currency tax obligation should urgently approach the Reserve Bank of Zimbabwe through their banks to facilitate disposal of their US$ holdings in oerder to access the requisite Zimbabwe dollars.
“Corporates are strongly discouraged from engaging in parallel market transactions for settlement of taxes as they will face sanctions from the Financial Intelligence Unit.“The usual Statutory penalties for late payment of taxes due shall be vigorously applied,” said Treasury.
