The government is considering removing a five cents tax on plastic money in order to reduce the cost of transacting.

The high cost of plastic money has seen Zimbabwe continuously experiencing quest for cash putting unnecessary pressures on the banks in terms of huge demands for cash.

chinamasa.jpgAccording to a statement issued by the Minister of Finance and Economic Development Cde Patrick Chinamasa today, the proposed removal of the five cents tax will provide relief to the banking public.

Harare Chamber of Commerce Secretary General Mr Donald Gwisayi says promotion of plastic money can only be fully achieved by the increased roll out of point of sale machines (pos).

“It remains to be seen whether this will work for the benefit of Zimbabweans,” says Mr Gwisayi.

The Finance Minister states that the alleged non-banking of cash by some traders and firms is a key cause of concern which is being investigated by regulatory authorities.

The government might be compelled to invoke laws which will result in those companies found not banking their funds losing operating permits, according to Cde Chinamasa.