Published: 2 hours ago

The Zimbabwean Government has temporarily put on hold the implementation of its wealth tax, pending completion of necessary administrative and legislative adjustments, Finance, Economic Development and Investment Promotion Deputy Minister Kudakwashe Mnangagwa said in Parliament on Wednesday.

The tax, introduced to compel high-net-worth individuals to contribute more to the fiscus, was expected to broaden the revenue base and address wealth inequalities. However, Deputy Minister Mnangagwa confirmed that collection has not yet begun.

"Since the introduction of legislation requiring selected wealthy individuals to contribute to the fiscus through a wealth tax, our Government temporarily shelved the implementation thereof, pending conclusion of requisite administrative modalities informed by the concerns raised by some stakeholders," he said.

He explained that the tax could only be enforced once clear mechanisms are in place to assess, monitor, and collect contributions from targeted individuals and entities. "Revenue collection will thus commence after the refinement of the implementation modalities," he added.

Wealth taxes are levies on the market value of assets such as real estate, shares, and investments. Globally, they are often used to reduce income and wealth disparities while generating funding for social services, infrastructure, and other public programs.

Zimbabwe's wealth tax was part of broader fiscal reforms aimed at expanding revenue streams beyond traditional income and consumption taxes. Treasury officials argue the measure would ensure that the country's wealthiest citizens contribute fairly to national development.

However, concerns have been raised over the capacity of the Zimbabwe Revenue Authority to properly identify and evaluate wealth holdings, with experts warning that loopholes could undermine compliance and revenue targets.

Emakhandeni-Luveve MP Collins Bajila questioned whether the Government might repeal the measure altogether, given that no revenue had yet been collected. Deputy Minister Mnangagwa dismissed the idea, noting that shelving the tax is temporary and necessary to finalize administrative procedures.

"The honourable member would have us repeal the legislation and then bring it back again before this august House. I would think that amendments would still need to come before this same House. It is a matter of process…but the intention is the same," he said.

Once consultations are completed and Parliament approves the required changes, the tax will be enforced, Deputy Minister Mnangagwa confirmed.
- Sunday Mail

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