Supporting the Zimbabwe Taxpayers Platform (ZITAP) and other reform-minded voices, the Members of Parliament (MPs) on August 19 called for urgent reform of the country’s tax policies.
During a debate on the Mid-Term Budget Statement presented by the Minister of Finance and Economic Development, Prof. Mthuli Ncube, on July 31, 2025, parliamentarians from across the political divide recommended reforming Zimbabwe’s tax regime.
ZITAP welcomes this buy-in and amplification of its position by parliamentarians and hopes that it will result in concrete reforms.
MPs called for the scrapping of the Intermediated Money Transfer Tax (IMTT), also known as the 2% tax on digital financial transactions, the reduction of the regressive VAT component affecting ordinary people’s consumption, and creating incentives for informal businesses to formalise to increase the tax base.
A recent Zimbabwe National Statistics Agency (ZIMSTATS) economic census report highlighted that Zimbabwe’s informal sector constitutes 76.1% of economic activities in the country.
This could explain the rise of indirect taxes, including VAT and IMTT, as the government tries to tap into this informal sector, but these instruments have been blunt and disproportionately affect the poor and the ease of doing business environment.
ZITAP has been calling for a tax policy regime premised on expanding the tax base rather than excessively taxing the few formally employed workers and a few registered companies.
During the Mid-Term Budget presentation, Minister Ncube failed to concretely act on these calls from think-tanks, including ZITAP, citizens, and business apex organisations, including the Zimbabwe National Chamber of Commerce (ZNCC) and the National Competitive Commission (NCC), for tax reform.
Stakeholders have been calling for a tax regime that ensures economic inclusion and relief for ordinary people, and competitiveness for the business sector, necessitating the Minister to balance revenue collection with these imperatives.
ZITAP concurs with the MPs that Zimbabwe’s non-tax revenue is low, pegged at 4% of total revenue collected in the first half of 2025 as reflected in the Mid-Term Budget, with the government collecting few resources from such sectors as mining, failing to tap into mining shares and profits.
In the run-up to the Mid-Term Budget Statement, and during consultations, the Minister had promised to resolve the issue of the tax burden, but only presented to Parliament another promise to reform without giving details and timelines.
The Minister of Finance must urgently act on these calls for reforms, which have become a national chorus.