Thursday, January 28, 2010

(NEWZIMBABWE) ZSE to levy capital gains tax

ZSE to levy capital gains tax
28/01/2010 00:00:00

THE Zimbabwe Stock Exchange (ZSE) has been forced to re-introduce Capital Gains Withholding Tax after treasury advised that the legal frame-work to scrap the levy has not yet been put in place. Capital Gains Withholdings Tax is pegged at 1 percent of all traded shares on the bourse.

The announcement by the ZSE now brings the total transaction cost to 4.21 percent, up from the 3.21 percent announced by finance Minister Tendai Biti in his national budget.

“It has been drawn to our attention that the legislation covering the applicability on capital gains withholding tax on marketable securities has in fact not been changed and accordingly the tax must continue to be levied,” the ZSE said.

The Ministry of finance revised downwards transition costs on the ZSE from 7.5 percent in an effort to increase activity on the bourse which was also being negatively affected by lack of liquidity resulting in thin trading volumes.

Meanwhile in Wednesday’s trade the benchmark industrial index went down 1.48 percent to close at 154.85 points on the back of widespread losses led by PPC which took a 25 cents dip at 255 cents while Econet gave up 11.01 cents to close at 478.99 cents.

Old Mutual traded 5.01 cents softer at 159.99 cents while SEEDCO eased 4 cents to close at 90 cents. Modest gains were recorded in Natfoods up 0.90 cents at 101 cents as well as Hunyani, Barclays, TSL and NMB.

The mining index shed 2.86 points (1.39 percent) to close at 203.57 points as Falgold dropped 2 cents to trade at 7 cents and RioZim retreated a cent to 310 cents whilst Bindura and Hwange traded unchanged at 23 cents and 30 cents.

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