Zanu-PF MPs whipped into 2026 budget line

Zanu-PF Members of Parliament say they were pressured into rubber-stamping Finance Minister Mthuli Ncube's ZIG 312.6 billion 2026 national budget after being told the controversial fiscal plan would not be altered under any circumstances.

Several MPs said debate was effectively rendered meaningless, as party members were instructed not to waste time challenging the proposals because the budget would be passed regardless. The claims come amid growing criticism from economic experts who argue that the budget offers little relief to ordinary citizens and businesses, relying instead on increased taxation to raise revenue.

Ncube's fiscal plan seeks to collect an additional US$1.47 billion in 2026, pushing total revenue to an estimated US$9.4 billion, up from this year's projected US$7.93 billion. Analysts say the strategy places a heavier burden on taxpayers at a time when household incomes and corporate margins remain under pressure.

For years, there have been calls for the Treasury to reduce what businesses describe as punitive taxes, a commitment Ncube reiterated in his budget speech. However, the minister proposed only a limited reduction to the intermediated monetary transfer tax (IMTT) on ZIG transactions, cutting it from 2% to 1.5%, while leaving the 2% IMTT on US dollar transactions unchanged. At the same time, Value Added Tax was increased from 15% to 15.5%.

Ncube also introduced a raft of new taxes, including a 15% digital services withholding tax targeting global technology firms such as Google, YouTube and satellite internet provider Starlink. He further removed the revenue threshold for the 5% electronic commerce operators' tax, effectively forcing all foreign e-commerce platforms serving Zimbabwe to comply, regardless of size.

The parliamentary portfolio committee on budget submitted an adverse report on the 2026 proposals, warning that the tax measures were burdensome to both businesses and taxpayers. However, debate on the report was curtailed after it emerged that Zanu-PF MPs had been instructed to push the budget through.

Zanu-PF chief whip Pupurai Togarepi dismissed claims that debate had been suppressed, insisting that parliamentary procedures were followed.

"All members who wanted to debate were allowed to," Togarepi told The Standard. "However, members are encouraged to observe the standing orders, especially that they should not repeat someone's debate. Anyone saying members were not allowed to debate does not understand parliamentary processes."

He said MPs were required to follow the various stages of the budget-making process, including stakeholder consultations and consideration of committee reports.

"After the reports, members have an opportunity to debate the Appropriation and the Finance Bill," Togarepi said. "We are still a long way from completing major parts of the budget-making process. Members are free to debate at all these stages. It's too early for someone to say members were not allowed to debate."

In its report, the budget committee criticised the two-tier IMTT system, warning that maintaining a 2% rate on US dollar transactions while lowering it for ZIG could distort the market by encouraging the use of US dollar cash and undermining IMTT revenue.

"The committee feels that this measure seeks to discourage large foreign currency cash withdrawals," the report said.

It also raised concerns over the proposed cash withdrawal levy on US dollar transactions, the digital services withholding tax and an increased betting levy. The committee warned that these measures could negatively affect betting operators, lotteries, casinos and punters by imposing a much higher tax burden on operators and increasing taxes on winnings.