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Author
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Murwisi, Panashe
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Title
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Impact of mobile money tax on the performance of Mobile money tax: A case of Intermediate money Transfer Tax (IMTT
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Abstract
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Developing countries usually encounter significant new macroeconomic problems when tax
measures are utilized to resolve economic crises. Using the example of intermediated money
transfer taxes, this study investigated the effects of mobile money taxes on the commercial
performance of mobile money agents. The goal of the study was to identify the factors that led
to the IMTT, as well as its detractors, shortcomings, unforeseen effects, and the connection
between the IMTT and the commercial success of mobile money agents. The pragmatic
philosophy served as the foundation for the study's descriptive research methodology and
mixed-method research design. The target audience was determined to be 200 Econet, Netone,
and Telecel mobile money business agents in Harare.54 mobile money agents, 3 Zimra
managers and 3 mobile service providers’ managers were selected as a sample. To
acquire qualitative information, document analysis, financial records, audit reports,
financial accounts from mobile money agents, and databases from Econet, Netone, and
Telecel were used. The response rate was 100% for a total of 54 questionnaires that
were distributed by mail, WhatsApp, and some even in physical form and 6 interviews
with the managers from Zimra and mobile service providers (econet,netone and telecel).
Descriptive statistics, means, correlations, and regression analysis were utilized to
assess the responses of mobile money agents. The study illustrates how Zimbabwe's tax
policy, which was put in place to raise revenue for promoting economic growth and
addressing a number of economic issues like unemployment, poverty, and unfavorable
economic development, resulted in the emergence of additional macroeconomic
problems like mobile money agent’s declining business performance The study's
findings demonstrated that the mobile money tax (IMTT), which reduced profitability,
transaction volumes, and return on investment, had a detrimental effect on the
commercial performance of mobile money agents. According to the study's findings,
some economic sectors may be negatively impacted by new tax policies that
governments implement in an effort to raise income. Therefore, the report advised
analyzing potential tax policy repercussions before enacting them as well as adopting a
mobile money tax system. It is advised that more research be done on how mobile IMTT
affects other sectors, such as the informal economy generally since it is typically
impacted by government regulations, as well as how to properly account for the tax in
financial statements.
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Date
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2022
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Publisher
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BUSE
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Keywords
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Mobile money tax
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Macroeconomic problems
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Supervisor
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N/A
