TREASURY wants to introduce a new tax on US dollar cash withdrawals from banks.
This tax is called the Cash Withdrawal Levy, and it’s part of the 2026 National Budget.
How Will the Tax Work?
For Individuals:
– Withdraw US$1–US$500 per month → No tax
– Withdraw US$501–US$1,000 per month → 2% tax
– Withdraw more than US$1,000 per month → 3% tax
Example:
If you withdraw US$1,200 in a month:
– First US$500 → No tax
– Next US$500 → 2% of US$500 = US$10
– Remaining US$200 → 3% of US$200 = US$6
Total tax = US$16 (on top of what the bank already charges)
For Businesses (Companies):
– Withdraw up to US$5,000 per month → No tax
– Withdraw US$5,001–US$10,000 → 2% tax
– Withdraw more than US$10,000 → 3% tax
But Wait—There’s Already a Bank Charge!
Banks already charge 3% on cash withdrawals. This new tax is on top of that.
So if you’re withdrawing US$1,200:
– Bank charges: 3% of US$1,200 = US$36
– New government tax: US$16
– Total cost = US$52 just to access your own money
Why Is Government Doing This?
Minister Ncube says:
– Too many people are using physical US dollars (not digital money)
– This makes it hard for government to track transactions and collect taxes
– He wants to push people to use digital payments (like swipe, EcoCash, ZIPIT)
Why Are People Angry?
– It punishes people for using their own money
– It discourages banking—people may stop using banks and go back to keeping cash at home
– It could fuel the black market, where people avoid taxes altogether
– It hits the informal sector hardest, where most people deal in cash and don’t have access to digital platforms
What Does This Mean for You?
– If you’re a vendor, cross-border trader, or small business owner who deals in USD cash, you’ll pay more to access your money
– If you don’t trust the ZiG and prefer USD, you’re being taxed for that choice
– If you’re already struggling, this tax makes life more expensive.
Bottom Line
This is not just a tax on cash—it’s a tax on trust. And for many Zimbabweans, it feels like being punished for surviving outside a system that hasn’t worked for them.
