Mthuli to fast-track tax reform in response to business outcry
STAFF WRITER
In a decisive move to tackle long-standing concerns over Zimbabwe’s complex tax regime, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said Government will immediately begin reviewing the country’s tax structure and statutory fees, starting with the agricultural sector.
Presenting the 2025 Mid-Term Budget Review in Harare, Professor Ncube said: “In recognition of the concerns raised by taxpayers and business representative organisations such as the Chamber of Mines, Confederation of Zimbabwe Industries and Zimbabwe National Chamber of Commerce, Government will continue to review the existing tax system with a view to reduce reported and observed distortions.”
The move is seen as a major response to complaints from industry over excessive compliance costs and an overly burdensome licensing environment.
The urgency of the review was underscored by the finance chief’s pledge to implement changes to levies and fees in agriculture within two weeks—signalling a rare accelerated policy response.
“These reforms are aimed at creating a conducive business environment that attracts both domestic and foreign investment, fosters innovation and promotes sustainable economic growth,” he said.
Government is also moving to digitise tax administration, integrate data systems and expand the tax base by formalising informal operators. According to ZimStat’s 2025 Economic Census, 76.1% of Zimbabwe’s 204,798 operational establishments are informal, highlighting the disconnect between regulation and the realities of the business landscape.
Ncube reaffirmed the administration’s commitment to cut compliance costs and red tape: “Government has begun the process of reviewing various fees and charges,” he told lawmakers, noting that licensing requirements for a single supermarket could stretch to 25 different authorisations.
Retail giants like OK Zimbabwe and TM Pick n Pay, along with poultry sector players, have cited the crushing weight of the current regulatory model—including a US$6,500 annual fee from the Agriculture Marketing Authority (AMA) and additional oversight from the National Biotechnology Authority.
“During the beginning of the year 2025, His Excellency, the President, Dr Emmerson Mnangagwa, made a commitment to improve the ease of doing business by addressing the high regulatory and utility costs and enhancing border efficiency,” Ncube said.
He stressed that the second half of the year will be dedicated to implementing these reforms, with streamlined processes, simplified compliance procedures, and digitised licensing platforms becoming central to Government’s economic agenda.
