Pressure mounts on Mthuli

CLOUDINE MATOLA

Zimbabwe’s tax system needs a radical overhaul, business leaders and economists have declared, warning that piecemeal  revisions will not be enough to rescue the struggling economy.

CEO Africa Roundtable CEO Kipson Gundani told Business Times – a market leader in business, financial and economic reportage – that excessive taxation is  driving  businesses into the ground, discouraging investment, and pushing companies into the informal sector.

“Zimbabwe is a highly taxed country. We don’t just need rate adjustments—we need a complete system revamp. The current structure is inefficient, overly complex, and an obstacle to business growth. Government must eliminate redundant taxes, streamline administration, and create a more predictable, investor-friendly tax environment,” Gundani said.

Zimbabwe imposes more than 50 different taxes, making it one of the region’s most heavily taxed economies. Business leaders say this burdensome regime is eroding competitiveness, increasing operational costs, and forcing many companies to shut down or evade formal taxation.

Confederation of Zimbabwe Industries (CZI) CEO Sekai Kuvarika welcomed the government’s announcement of tax reviews but warned that without bold reforms, businesses will continue to struggle.

“We welcome this development and expect that it will bring relief to business. It should unlock our competitiveness as we reduce the cost of doing business. This is the most important policy direction announcement this year and it has been long awaited,” she said.

Zimbabwe National Chamber of Commerce (ZNCC) president Tapiwa Karoro stressed that the current tax structure is unsustainable and must be completely redesigned.

“…this has been one of our key advocacy points. The high number of taxes has significantly increased the cost of  doing business, reducing  competitiveness and discouraging investment. Too many taxes make business expensive, reducing competitiveness and deterring investors. A full-scale overhaul will improve compliance, widen the tax base, and stimulate economic activity,” Karoro said.

He also warned that high taxation is pushing businesses underground.

Economist Vince Musewe cautioned that Zimbabwe’s tax base is shrinking as companies collapse under high costs and rigid regulations.

“… clearly , the tax base is getting smaller and this puts pressure on revenues and expenditures. As businesses shut down, both corporate and individual tax contributions decline. We need a system that fosters business growth, not one that suffocates enterprises,” Musewe said.

Economist Prosper Chitambara noted that Zimbabwe’s high tax rates make the country uncompetitive.

“I think it’s something that is long overdue, especially the downward revision of taxes. I hope it’s not an  upward review or a downward review.

We can take a cure from what countries like the US, President Donald Trump has been doing in the US. And when you look at other countries like Ireland and Argentina have used tax-friendly policies to attract investment and expand their economies. Zimbabwe must do the same,” he said.

Investment analyst Tafara Mtutu warned that without major restructuring, Zimbabwe will push even more businesses into informality, further shrinking government revenue.

“If the government doesn’t overhaul the tax system, the tax-to-GDP ratio will keep falling, and eventually, there will be little left to collect,” Mtutu said.

With business leaders, economists, and analysts united in their call for sweeping reforms, pressure is mounting on the Finance Ministry to act decisively. Stakeholders insist that only a radical tax overhaul—not minor adjustments—can restore economic competitiveness, attract investment, and drive long-term growth.