8 new stupid taxes now in force in Zimbabwe

The government has confirmed the implementation of wide-ranging new tax measures, marking a significant shift in the country's revenue strategy with far-reaching implications for consumers, businesses and foreign investors.

The new regime, which took effect at the start of the year, introduces higher consumption taxes, new digital levies, increased mining export charges and sharply raised gambling taxes, as authorities move to broaden the tax base and capture revenue from sectors previously viewed as undertaxed.

A key pillar of the new framework is the introduction of a 15% Digital Services Withholding Tax (DSWT), which applies to payments made to foreign digital platforms such as Netflix, Spotify, Amazon Prime, Starlink and ride-hailing services including Bolt and InDrive.

Government argues that the tax addresses a long-standing gap in the tax system, where offshore digital companies provide services directly to local users without establishing a physical presence in the country.

Local banks and payment processors are mandated to collect the tax at the point of transaction. Stanbic Bank Zimbabwe, among others, has already notified customers via text message that the 15% withholding tax on international internet and card payments is now active.

At the same time, the standard Value Added Tax (VAT) rate has been increased from 15% to 15.5%. VAT zero-rating has also been removed for tourist facilities, accommodation for non-residents and hunting safaris, a move expected to raise the cost of visiting the country for foreign tourists.

The mining industry, a cornerstone of the national economy, is also bearing a heavier fiscal load. A 10% export tax has been introduced on lithium ore, antimony and unbeneficiated chrome, alongside a revised tax on black granite.

In addition, a new 3% levy now applies to the sale and export of coal, lithium, black granite, quarry stone and dimensional stone, reinforcing government's push to encourage value addition and increase mineral-related revenues.

The gaming and betting industry is confronting some of the steepest changes under the new tax regime. Bettors' withholding tax on winnings has risen from 10% to 25%, while operators' gross takings tax has jumped from 3% to 20%.

Sports betting firms and casinos were required to submit their first tax returns under the new framework by January 5, 2026, with payments due by January 10, significantly tightening compliance timelines.

The tax overhaul extends to the property and rental market, with measures aimed at closing loopholes and formalising transactions. Authorities have introduced a special capital gains tax on the disposal of shares in companies whose principal asset is land, targeting deals structured to avoid standard property transfer duties.

In addition, landlords renting out business premises are now subject to a Presumptive Rental Income Tax of 15%, a move designed to bring more rental income into the formal tax net.

Officials say the new measures are necessary to strengthen public finances, though analysts warn they could raise costs for consumers and businesses while testing the country's competitiveness for investment in the short term.