Zimbabweans face increased levies

Philemon Jambaya

Zim Now Editor

As Zimbabweans welcomed the new year, they also ushered in a slew of new.

The Treasury led by Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, introduced the new levies as part of the 2025 National Budget Statement.

A 1% Fast Foods Tax will be imposed on the sales value of fast food items like pizzas, burgers, and French fries, effective January 1, 2025. This move aims to encourage healthier eating habits among Zimbabweans . Additionally, a 10% withholding tax on gross winnings of sports betting punters will be introduced to bring punters into the tax net.

To promote biodegradable alternatives and protect the environment, a 20% plastic carrier bag tax will be levied on the sale value of plastic carrier bags. This measure is expected to reduce the country's plastic waste and encourage sustainable practices.

Properties converted from residential to business use will attract a 25% tax on their rental income, effective January 1, 2025. The capital gains tax on marketable securities will be revised from a temporary 2% withholding tax to a final 1% tax. Excise duty on alcoholic beverages will increase from 25 cents per liter to 30 cents per liter .

To promote eco-friendly practices, the Treasury will reduce customs duty on electrical vehicles imported into the country. Value-added tax (VAT) on liquefied petroleum gas (LPG) will be removed, and the sugar tax will be reduced to boost the drinks manufacturing sector.

To address low and late revenue collection, the Treasury has reduced the days within which companies that collect VAT have to remit it to ZIMRA. This move aims to improve tax compliance and reduce tax evasion.