3 December 2018

Zimbabwe: Ecocash FCA Wallet Transactions Exempt From 2 Percent Tax

The recently launched EcoCash Foreign Currency Account wallet is exempt from the 2 percent Intermediated Mobile Transfer Tax, NewZimbabwe.com Business has learnt.

The FCA wallet was launched last week by EcoCash parent Cassava Smartech in response to the Reserve Bank of Zimbabwe directive for all banks to open separate foreign currency accounts.

However, the transacting public was suspicious that opening the EcoCash FCA wallet would expose them to multiple 2 percent tax charges, a development which was discouraging the service's uptake.

But, in a statement Cassava Smartech chief executive, Eddie Chibi refuted the fears and assured the public that their funds will be safe.

"You were probably thinking that making electronic payments using the EcoCash FCA wallet gets you taxed the 2 percent tax," he said.

"But no, all transactions (payments or sending money) are exempted from that tax. You are only charged the EcoCash fees only when making a payment and not that absurd 2 percent," he said.

The new EcoCash FCA wallet allows one to cash in and out real United States dollars.

"Additionally, the EcoCash FCA wallet will allow you to even make forex payments, in situations where you are required to pay in foreign currency," the company said.

"In that case, you can make a payment just like when you use the normal EcoCash wallet (the one for local currency), only that you will be making the payment using the new FCA wallet."


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