Banks Blame Money Transfer Tax For "Exorbitant" Fees
The Bankers Association of Zimbabwe (BAZ) has defended current bank charges, saying the fees were being increased by the Treasury’s Intermediated Money Transfer Tax (IMTT).
Local banks have been accused of fleecing depositors through astronomical bank fees coupled with meagre interest rates on deposits.
Even though almost every other industry in Zimbabwe is struggling due to a weak economy, banks have been thriving as a result of the new focus on non-funded income rather than the core business of lending more.
Banks have hiked withdrawal fees to about 3% of the amount being withdrawn from the 1% charged a few months ago.
Depositors are also being charged about 2.5% for withdrawals done on Automated Teller Machines.
The permanent secretary of the Ministry of Finance, Economic Development and Investment Promotion, George Guvamatanga, said that banks should slash their charges and desist from “robbing” depositors.
However, Fanuel Mutogo, the CEO of the Bankers Association of Zimbabwe, told Business Times that bank charges reflect IMTT. He said:
We have competitive charges but the problem is that with this IMTT from the Treasury, the charges going higher and the blame is on banks. We are not responsible for IMTT.
According to ZIMRA, IMTT is tax-chargeable on financial transactions which happen through transfers such as direct debits, online transfers, mobile money transfers, supplier payments and interbank transfers subject to specified exemptions.
More: Pindula News
