In his budget statement on Wednesday, Biti said the dual pricing regime
promoted unintended consequences where business evaded tax obligations
by misrepresenting that transactions were undertaken ion Zimbabwean
dollars.
He said in reality no business was trading in local currency.
With immediate effect, therefore, Statutory Instrument 5 of 2009 has
been revoked to enable the use of multiple currencies in order to
facilitate trade and tax collection in the economy, said Biti.
The necessary amendments to the Exchange Control Act allowing for use of multiple currencies as legal tender will be effected.
Biti said the Zimbabwean dollar had become moribund and was a currency that the public and any trader could accept.
He said the economy would depend on the inflow of foreign currency rather than local currency.
Biti said all economic enterprises from the informal sector to the
largest corporate listed on the stock exchange should meet their tax
obligations in foreign currency.
ZimEye
Post published in: News