Zimbabwe Unveils New Tax Measures, Increasing Burden On Already Strained Taxpayers
Finance, Economic Development, and Investment Promotion Minister Mthuli Ncube on Thursday announced a series of new taxes aimed at increasing government revenue to address rising financial demands, further burdening an already strained taxpayer base.
The new taxes outlined in the budget, which are effective January 01, 2025, will target sectors including betting, fast food, and plastic bags, among others.
Below are the new taxes in the 2025 National Budget:
- Fast Food Tax – a 0.5% tax on the sales value of fast food items like pizza, burgers, chips, tacos and hot dogs.
- Betting Tax – a 10% withholding tax on the gross winnings of sports betting punters.
- Plastic Bag Tax – a 20% tax on the sale value of plastic bags.
- Rental Income Tax – a 25% tax on the rental income of properties converted from residential to business use.
- Capital Gains Tax on Marketable Securities – a 1% tax on marketable securities.
- Excise Duty on Alcoholic Beverages – excise duty on alcohol increased from USD 0.25/litre to USD 0.30/litre.
- Royalties on Quarry Stones – quarry stones will attract a royalty rate of 0.5% of their sales value.
- Corporate Income Tax on Building Societies – receipts from non-mortgage activities by building societies will now be taxed.
- Mandatory Tax Registration for Emerging Sectors – small businesses including car dealers and hardware operators must register for taxes, failing which specific quarterly corporate tax payments will be levied against them.
Former MP for Mt Pleasant, Fadzayi Mahere, criticized Minister Mthuli Ncube for increasing the tax burden on citizens while enjoying a lavish lifestyle. She wrote on X:
You drive the latest big bad Range Rover for which you paid 0% import duty yet you make a budget statement that squeezes every drop of blood from the taxpayer!
You’re not even ashamed that the country has a ballooning debt of over US$21 billion, you cannot afford to pay teachers or that you rely on food handouts during a drought!
To cap it all off, your solution to the economic crisis is to tax chicken and chips, njuga and rental income. No wonder ZESA protested after you spoke by turning the lights off as a sign of the darkness to come.
The economy is dead and the country is on auto-pilot. The Budget is anti-people, anti-productivity and anti-progress. It’s a mess.
More: Pindula News
