#EXCLUSIVE: Gvt Invades Global Fund Money

THE Global Fund next week dispatches a team to  engage Finance Minister, Prof Mthuli Ncube over the 2 percent intermediated money transfer tax impacting its humanitarian funding efforts for the country, HealthTimes  can exclusively reveal.

By Kudakwashe Pembere

Global Fund injects the largest chunk of money needed in the implementation of programs and medication of HIV, TB and Malaria and they pumped into Zimbabwe over US$1, 4 billion to date

With Treasury collecting a total of $50 million in January 2019 through the two percent electronic transfer tax, the taxation has had a ripple effect affecting humanitarian aid.

Initially, Finance Minister Professor Mthuli Ncube had responded by setting an upper limit of $500 000 and lower limit of $10 but still businesses complained until Government pledged to further consider their input. According to Treasury, all transactions above $500 000 attract a flat tax of $10 000.

CCM Zimbabwe Country Coordinator Mr Oscar Mundida told this publication that Global Fund is worried with the intermediated money transfer tax since in the past it was exempted from taxes.

“There is an agreement that the Global Fund is to be exempted from all forms of tax in Zimbabwe. It was that Global Fund should not be taxed,” he said.

Mr Mundida said the arrangement was overshadowed by the 2 percent tax.

“Global Fund has been at the receiving end of this 2 percent tax,” he added.

In January last year, the Global Fund to fight Aids, tuberculosis and malaria granted Zimbabwe $502 million, with government giving assurances that the money will not be misused.

He revealed that apart from the audit mission, also  on the agenda of the Global Fund country team was seeking redress on the controversial 2 percent tax.

“The country team is coming into the country next week. They will be having a meeting with the Finance Minister to talk over the issue,” said Mr Mundida.

The Global Fund gave the country over half a billion United States Dollars for strengthening health systems in Zimbabwe to achieve targets set to curb diseases, the intermediate money transfer tax  shaved off about US$1 million.

The Global Fund will also be in the country discussing matters to do with funding, implementation and procurement progress.

Related posts

Leave a Comment