'Zimbabweans paying 15 different taxes'

Published: 9 hours ago

Former Finance Minister Tendai Biti has accused the government of overtaxing citizens, claiming that Zimbabwe is now the most heavily taxed country in Africa following the introduction of new presumptive taxes.

In a statement posted on his official X account, Biti criticised Public Notice 51 of 2025, which outlines the tax obligations for various groups in the informal sector. He said the measures were a continuation of the Finance Act of 2024, gazetted on 24 October last year.

"Through Public Notice 51 of 2025 the regime has announced scales of presumptive taxes to be paid by various groups in the informal sector. The public notice is a mere restatement of punitive presumptive taxes published in the Finance Act of 2024," Biti said.

Biti said the new system forces a wide range of small-scale businesses and individuals to pay taxes. These include informal traders, small-scale miners, taxi and omnibus operators, driving schools, hairdressers, cross-border traders, bottle stores, and restaurants.

He highlighted examples he described as "absurd," including a US$5 monthly levy per chair for hairdressers and a 20% tax on the duty value of goods imported by cross-border traders. Some operators, such as in the transport sector, face monthly charges of up to US$500 (around R9,400).

"Zimbabweans are overtaxed," he said.

"The most taxed country in Africa"

According to Biti, Zimbabwe's tax levels were already among the highest on the continent before the recent measures.

"Before the rebasing of the economy taxes were 30% of GDP, double Africa's average, making Zimbabwe the most taxed African country," he stated.

He listed at least 15 different taxes and levies faced by citizens each year, including PAYE, corporate tax, IMMT, VAT, fuel levies, carbon tax, AIDS levy, excise duties on alcohol and cigarettes, presumptive taxes, stamp duty, toll fees, vehicle licences, ZBC licence fees, customs duties, capital gains tax, municipal rates, and NSSA contributions.

Biti warned that the high and regressive tax burden is draining disposable incomes, choking economic growth, and deepening recessionary pressures.

"High regressive taxes hit innocent working people who are left with little or no disposable income. Low disposable incomes underpin a crisis of under accumulation, the basis of any economic recession. Thanks to high toxic taxes, an artificially tight monetary policy and a mismanaged exchange rate this economy is bleeding," he said.

Biti urged government to scrap presumptive taxes such as the Intermediated Money Transfer Tax (IMMT) and instead pursue inclusive economic reforms.

"The answer to informality lies in growing a large formal economy that is inclusive. It lies in providing capital for start-ups and growth of SMEs. It lies in registration, data bases and digitisation, the kind of things de Soto wrote about 20 years ago. Presumptive taxes like all high taxes only lead to high levels of non-compliance through avoidance and evasion," he argued.
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