Zimbabwe's economic push

Philemon Jambaya

Zim Now Editor

Zimbabwe has unveiled its 2025 tax roadmap, a strategic plan designed to broaden the nation's revenue collection base and fuel vital development projects across the country. In a climate marked by global and local economic shocks, climate change impacts, and limited external support, the government is placing a strong emphasis on domestic resource mobilization to bridge the fiscal gap.

The 2025 Annual Tax Conference, a pivotal gathering of government officials, tax experts, and business leaders, provided a platform to dissect the new tax measures. While the business community has expressed general support for the roadmap, the government is optimistic about achieving its ambitious revenue targets, banking on improved compliance and a favorable agricultural season, coupled with growth in key productive sectors.

"This meeting was an eye opener in that, it gave us an insight on how our roadmap for this year is being perceived by the private sector," stated Mrs. Grace Muzondo, Director of Revenue and Tax Policy in the Ministry of Finance, Economic Development and Investment Promotion. "What makes it special is that it is being held when we have started implementing the agenda and there are positives as evidenced by the compliance rate since January."

The government's approach reflects a delicate balancing act, aiming to foster growth and development while simultaneously boosting productivity. "The government of Zimbabwe is of the view that the tax system should be modelled in a manner that fosters growth and development while boosting productivity," . Muzondo explained, "no wonder why in the budget there are tax raising measures as well as more incentives to provide relief and support to the productive sectors of the economy."

Tax experts are urging industry and commerce to play a crucial role in ensuring the success of the tax roadmap by adhering to compliance standards. "While there might be concerns about the country’s taxation measures or policies, a platform like the one held today indicates commitment to foster workable measures in which industry and commerce can talk to the government and find each other on certain loopholes or burdens," said Simba Hamudi, a tax expert.

He emphasized the importance of timely compliance, noting, "That the 2025 National Budget has been operationalised means that the tax roadmap for this year is in motion, so industry and commerce need to comply. If there is any room for fine-tuning then this can only be done during the mid-term review of the budget."

The government's revenue targets are crucial for funding development projects and sustaining public sector employment costs. Key tax components expected to drive revenue collection include Value Added Tax (VAT), Pay As You Earn (PAYE), Customs Duty, Mining royalties, and Corporate Tax.

In the 2025 National Budget, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube outlined measures to sustain economic growth, aiming for a growth rate exceeding six percent.

However, tax experts are also highlighting the necessity of policy certainty to foster business stability and sustain long-term growth. Consistent and predictable policies are seen as essential for attracting investment and creating a stable environment for businesses to thrive.

The success of Zimbabwe's 2025 tax roadmap hinges on a collaborative effort between the government and the private sector.