HARARE — A raft of new tax measures has officially taken effect, marking a significant shift in Zimbabwe’s fiscal framework as Government moves to strengthen domestic revenue mobilisation, close compliance gaps and align taxation with evolving economic activity.
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At the centre of the changes is a modest increase in Value Added Tax, with the standard rate rising from 15 percent to 15.5 percent. Treasury has framed the adjustment as a revenue-enhancing measure designed to support public service delivery while maintaining regional competitiveness.
In the tourism sector, VAT zero-rating has been removed for tourist facilities, accommodation for non-residents and hunting safaris. Authorities argue that the move corrects long-standing distortions in the tax system by ensuring that high-value services consumed largely by foreign visitors contribute fairly to national revenues, while also broadening the tax base without increasing the burden on basic goods.
A major structural reform is the introduction of a 15 percent Digital Services Withholding Tax, targeting imported digital services such as streaming platforms, online advertising, ride-hailing and satellite-based services. The measure shifts VAT collection to local payment intermediaries, addressing revenue leakages from offshore digital platforms that previously operated outside Zimbabwe’s effective tax net.
In the extractive sector, Government has introduced new export taxes aimed at promoting value addition and beneficiation. These include a 10 percent export tax on lithium ore and concentrates, antimony and unbeneficiated chrome, alongside a revised tax regime for black granite. Complementing this is a new 3 percent levy on the sale or export of coal, lithium, black granite, quarry stone and dimensional stone, reinforcing policy efforts to discourage raw exports and stimulate domestic processing.
Property and investment taxation has also been tightened, with the introduction of a special capital gains tax on the disposal of shares in land-holding entities.
In addition, business premises landlords are now subject to a 15 percent presumptive rental income tax, a move aimed at improving compliance in a sector historically characterised by under-declaration. The gaming industry has not been spared, with gaming operators now taxed at 20 percent of takings, while tax on punters’ winnings has increased to 25 percent. Treasury maintains that the adjustments balance revenue needs with responsible regulation of the sector.
Taken together, the new measures signal a deliberate policy shift under the National Development Strategy 2 towards broadening the tax base, formalising emerging sectors and aligning taxation with national development priorities.
While some sectors will face higher costs in the short term, Government argues that improved revenue collection is essential to fund infrastructure development, social services and economic transformation on the path to Vision 2030.
