Zimbabwe’s sweeping new tax measures came into force from midnight Thursday after parliament approved the 2026 national budget, ushering in one of the country’s most significant fiscal overhauls in recent years as the government seeks to bolster revenue mobilisation and stabilise strained public finances.
Finance officials say the reforms are aimed at widening the tax base, modernising revenue collection and reducing fiscal pressures at a time of persistent currency volatility, weak growth and rising social spending demands. The new measures introduce a mix of fresh levies and revisions to existing taxes, affecting consumers, businesses and key economic sectors.
Among the headline changes is a reduction in the Intermediated Money Transfer Tax (IMTT) on local-currency transactions, which has been cut to 1.5 percent from two percent. The tax, a major source of government revenue, is levied on electronic and mobile money payments widely used in the economy.
Authorities say the cut is intended to ease the cost burden on households and firms that rely heavily on digital payments, while maintaining a critical revenue stream for the state. Critics, however, argue that even at the lower rate, the IMTT continues to raise transaction costs in an economy already grappling with high inflation and subdued consumer spending.
The gaming and betting industry has been singled out for tighter fiscal oversight under the new tax regime. Gaming operators will now be required to remit 20 percent of their gross monthly takings to the tax authorities, while gamblers will pay a 25 percent tax on winnings.
Government officials say the measures are designed to ensure that the fast-growing sector makes a fair contribution to public revenues, amid a proliferation of betting platforms and rising participation, particularly among young people. Industry players have warned that higher taxes could dampen activity or encourage informal operations.
Extractive industries have also been targeted as the state seeks to capture greater value from natural resources. A new three percent levy has been introduced on coal production, reflecting the government’s push to strengthen revenues from mining and energy-related activities.
In the property sector, landlords will now be subject to presumptive rental income tax equivalent to 15 percent of rentals paid by business tenants operating on their premises. Authorities say the measure is aimed at improving compliance in a sector where tax avoidance has been widespread.
Mining, a cornerstone of Zimbabwe’s economy and a key source of export earnings, has not been spared by the reforms. Gold producers will now pay royalties on a sliding scale linked to international prices, replacing the previous flat-rate system.
Under the new structure, royalties will be set at three percent when gold prices are below $1,200 an ounce, rise to five percent when prices range between $1,200 and $2,500, and increase to 10 percent when prices exceed $2,500. The government says the move is intended to align state earnings with global market conditions, though miners have cautioned that higher royalties could undermine investment and output.
Consumers are also likely to feel the impact of the fiscal changes. Value Added Tax (VAT) has been increased to 15.5 percent from 15 percent, a move expected to raise the cost of goods and services across the economy.
In addition, authorities have introduced a 15 percent Digital Services Tax on e-commerce transactions, targeting online platforms and cross-border digital services. The government says the tax is necessary to modernise the fiscal framework in line with shifting patterns of economic activity and the growing digital economy.
Zimbabwe’s economy has struggled to achieve sustained growth in recent years, weighed down by currency instability, high inflation and limited access to external financing. The government argues that the latest tax reforms are essential to strengthen fiscal sustainability and support economic recovery.
Economists say the effectiveness of the measures will depend on enforcement and broader confidence in economic management, warning that excessive tax pressure could further strain businesses and consumers already operating in a difficult environment.
