The
decision
came
during
a
marathon
parliamentary
session
that
ran
into
the
early
hours
of
Wednesday,
following
strong
lobbying
from
lawmakers
and
the
public.
Critics
had
warned
that
the
new
tax
would
“strangle”
ordinary
citizens
and
push
the
economy
further
into
the
informal
sector.
The
reversal
occurred
during
debates
on
the
Finance
Bill
for
the
2026
National
Budget,
with
the
controversial
clause
removed
entirely.
The
tax
was
announced
on
27
November
2025
during
the
Minister’s
budget
presentation.
Stakeholders
argued
that
the
levy
would
discourage
the
use
of
formal
banking
channels,
burden
low-income
earners,
and
drive
more
transactions
into
the
informal
economy.
The
Finance
Bill
had
originally
proposed
a
tiered
tax
on
foreign
currency
withdrawals,
which
the
Treasury
said
was
intended
to
curb
money
laundering
and
encourage
electronic
transactions.
However,
MPs
in
the
National
Assembly
opposed
it,
pointing
out
that
it
would
unfairly
penalise
civil
servants
and
low-income
earners
who
rely
on
cash
for
daily
needs.
Ncube
admitted
the
levy
risked
becoming
a
“big
penalty”
that
might
deter
citizens
from
using
formal
banking
systems.
He
therefore
moved
to
repeal
Clause
7
of
the
Finance
Bill,
scrapping
the
planned
withdrawal
tax
entirely.
Said
Ncube:
“I
have
listened
closely
to
the
debate
from
Honourable
Members
and
the
public
regarding
the
cash
withdrawal
levy
proposals.“Therefore,
I
hereby
propose
that
we
repeal
that
whole
Clause
7.
I
thank
you.”
The
Minister
had
proposed
a
tiered
withdrawal
fee.
For
individuals,
a
2%
charge
would
have
applied
to
monthly
withdrawals
between
US$501
and
US$1,000,
while
companies
would
have
faced
the
same
2%
fee
on
withdrawals
of
US$5,001
to
US$10,000
per
month.
For
higher
amounts,
the
fee
would
have
increased
to
3%,
applying
to
individuals
withdrawing
over
US$1,001
monthly
and
companies
withdrawing
more
than
US$10,001.
Withdrawals
of
US$0
to
US$500
for
individuals
would
not
have
been
subject
to
any
fee.