Delta Corporation’s tax bill hits US$315m, driven by VAT and Excise growth

STAFF WRITER

Delta Corporation Limited has reported a total tax contribution of US$315.2 million to the Zimbabwean fiscus for the year ended 31 December 2025. This represents a 24.7% increase from the prior corresponding period (US$252.8 million in 2024), driven by volume recovery, pricing strategies, and improved operational efficiencies.

The group continues to sustain an annual growth rate (CAGR) in tax remittances of approximately 20% over the last four years, cementing its status as a critical revenue generator for Treasury.

The composition of the tax bill highlights significant growth in consumption-based taxes (VAT and Excise Duty), which collectively account for 58% of the total tax burden. VAT and Excise Duty remain the largest contributors, both exceeding US$90 million in 2025. These are indirect consumption taxes that provide the government with immediate, reliable cash flow. In an economy where informal sector taxation is difficult, Delta acts as a formal “collection agent,” efficiently gathering revenue from millions of consumers and channelling it directly to the Treasury to fund civil servant salaries and government operations.

PAYE shows a stark increase (approx. 50%) while Import Duty and Sugar Tax show relatively stable contributions compared to other heads.
This 24.7% increase in fiscal contribution was underscored by the company’s recognition by the Zimbabwe Revenue Authority (ZIMRA), which honored the beverage giant with three major compliance awards for 2025.

The awards, accepted by CEO Mathlogonolo Valela, validate Delta’s strategy of combining volume growth with rigorous adherence to fiscal modernisation.

The revenue authority recognized Delta’s critical role in the country’s revenue generation and trade ecosystem with the best excise duty contributor (Beer), National Impact Authorised Economic Operators (AEOs) importer award and trade facilitation Greater Harare (Importers).

Beyond the payments, Delta is actively advancing Zimbabwe’s fiscal infrastructure. The group is spearheading the Authorised Economic Operator (AEO) programme, a standard designed to secure and facilitate global trade, enabling faster goods clearance.
Furthermore, Delta has moved to integrate automated API file uploads under the Tax and Revenue Management System (TaRMS) platform. This move supports the government’s push for full fiscal digitalization, ensuring transparency and reducing administrative friction for both the regulator and the taxpayer.

“We continue to play a leading role in advancing modern compliance practices… ensuring transparency and national development. These awards are a tribute to the hard work of our teams,” Murambinda stated.

Management highlighted ongoing engagements with the government through platforms like ZIDA, advocating for a level playing field for domestic investors. Delta is advocating for the government to extend fiscal incentives currently available to foreign direct investors to established domestic players. They also want the authorities to address market distortions where local producers face higher compliance costs compared to imported finished goods.

Patricia Murambinda, General Manager – Corporate Affairs emphasised the need for policy arbitrage to be minimised. “These engagements focus on ensuring that domestic investors can access incentives and benefits comparable to those available to foreign investors… At the same time, the group remains mindful of its responsibility to pay fair and appropriate taxes that support the fiscus.”

Despite a highly competitive landscape marked by the influx of imported beverages, Delta has maintained volume momentum through rigorous cost discipline and route-to-market (RTM) innovation.

The company’s Belmont Brewery upgrade remains on schedule, with commissioning expected in the third quarter of F27. The upgrade is critical for mitigating current supply constraints in the Lager Beer division. Until commissioning, the group will focus on optimizing existing capacity to meet demand.

Meanwhile, Delta’s commitment to local sourcing and agricultural development is evident in its grower programme, which supports 47 commercial farmers and approximately 12,000 communal farmers for the 2025/26 summer season. The programme aims to achieve 60% coverage for maize and 100% coverage for sorghum, aligning with anticipated volume growth in the coming year.