A pro-democracy activist has hauled Finance and Economic Development Minister Mthuli Ncube to court seeking an order to suspend the imposition of a punitive tax on electronic transactions.
In an application filed in the High Court on behalf of Mfundo Mlilo by Tendai Biti, a member of Zimbabwe Lawyers for Human Rights, the pro-democracy activist argued that government’s decision, which is now being implemented by service operators, was made by Ncube without the necessary backing of the law in particular the amendment of the income tax or the regulation of the tax in a statutory instrument.
Mlilo argued that although Ncube had on Friday 12 October 2018 belatedly enacted the Finance (Rate and Incidence of Intermediated Monetary Transfer Tax) Regulations Statutory Instrument (SI205/2018) in which he sought to legalise and actualise his announcement done on 01 October 2018, the statutory instrument still remained unconstitutional and a nullity for a Minister cannot in regulations amend an Act of Parliament.
Mlilo wants the High Court to suspend the decision taken by Ncube on 01 October 2018 to review the Intermediate Money Transfer Tax from 5 cents per transaction to 2 cents per dollar and to also forthwith suspend the Finance (Rate and Incidence of Intermediated Money Transfer Tax) Regulations published in SI205/2018.
Source: Zimbabwe Lawyers for Human Rights