ZIMBABWE
Activities at Zimbabwe’s tobacco auction floors were expected to improve following the scrapping of the 2% electronic transfer tax on all activities at the country’s tobacco floors, with prices being offered for the crop beginning to firm.
The marketing season started slowly as some farmers adopted a wait-and-see attitude, while others who sold their crop were not happy with the low prices on offer. The first bale was bought for US$4,50 per kilogram, 40 cents less than the price of the first bale last season.
Some of the transactions that are exempted from the 2% electronic tax include transfer of funds between an individual’s mobile wallet and or bank account, transfer of funds from mobile money trust funds for the purchase of electricity, transfer of funds to mining houses by the Minerals and Marketing Corporation of Zimbabwe (MMCZ) as well as transfer of money to producers or sellers of gold by Fidelity Printers and Refiners.
Tobacco merchants and auction floor operators, through the Tobacco Industry and Marketing Board (TIMB), had previously requested the government to scrap the 2% tax, arguing that it would seriously hurt their margins and that their operations were similar to that of the MMCZ and Fidelity Printers and Refiners. As such, they also wanted to be exempted from the tax.