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OpenMthuli Promises Major Tax And Regulatory Fee Reforms In Six Months
Finance, Economic Development, and Investment Promotion Minister Mthuli Ncube has said the Government is set to introduce changes to taxes and regulatory fees in a bid to improve the ease of doing business and create a more investor-friendly environment in the country.
Currently, the formal business landscape is burdened by high tariffs and a complex regulatory framework that demands businesses comply with numerous tax and permit obligations across multiple agencies.
This cumbersome structure has led to increased operational costs, making it increasingly difficult for some businesses to remain sustainable.
In an exclusive interview with The Sunday Mail, Minister Ncube revealed that significant reforms are on the way.
He said some taxes and fees will be slashed by as much as 50%, while others will be completely eliminated over the next six months.
These measures are expected to ease the financial strain on businesses and encourage both local and foreign investment. Said Ncube:
The idea is to see which of these taxes and which of these regulatory fees ought to be reduced or scrapped, to make it easier for businesses to do business.
We have set up a committee within Government which is going to look into this matter and then we will make recommendations as to what should be removed and what should be reduced.
The cost of doing business in Zimbabwe is relatively high, and we are working to improve the business environment. Part of the solution lies in addressing regulatory fees and licensing costs.
Taxes are collected by the Zimbabwe Government, while regulatory fees tend to be collected by agencies.
I would not say taxes (are the problem) as such; I would actually say it is more to do with regulatory and licensing fees than the number of taxes.
Ncube said the Government wants to align the number of business licenses and taxes with regional and international standards, ensuring a more competitive and globally consistent business environment. He said:
We will streamline the taxes; we will cut out some of them; we will reduce the number of steps required to set up and run a business; and reduce the number of licences.
We are aware that in some countries in the region, businesses require about half the number of licences we do. A good target would be to cut the number of regulatory licences needed to start a business by half.
If we can achieve that — halving the number of steps and halving the cost of doing business — that would be a good target and that is a target that we are aiming for.
At this stage it would be premature to say, this one will be removed, this one will be scrapped, this one we’ll reduce, it would be too early to do that.
Our view is that in the next six months we will make progress. So, give us about six months. I would say about July, August this year, we should be able to have definitive information as to where we should cut and reduce.
The Zimbabwe Catholic Bishops’ Conference (ZCBC) has recently raised concerns over the growing tax burden on citizens.
In their Lenten Pastoral Letter, dated March 3, 2025, the bishops said that many people are struggling under excessive taxation, with businesses closing and jobs being lost
More: The Sunday Mail
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