“We Are Overtaxed”: Zimbabweans Push Back as 2026 Budget Looms
- Southerton Business Times
- 7 days ago
- 2 min read
HARARE — As Zimbabwe edges toward the presentation of the 2026 National Budget, frustration over the country’s tax burden is rising across communities and industries. From the crowded lanes of Mbare Musika to high-end corporate offices in Borrowdale, citizens and businesses share a common grievance: taxation has become overwhelming, intrusive and, for many, economically suffocating.
Zimbabwe’s current fiscal framework is characterised by a long list of levies that cut across income, consumption, imports and digital transactions. VAT, PAYE, customs duties and the widely criticised 2% Intermediated Money Transfer Tax (IMTT) have created what many citizens describe as a system that taxes them at every turn. During pre-budget consultations, business owners and informal traders warned that these pressures are eroding profitability, shrinking disposable income and stifling economic mobility. One entrepreneur summed up the mounting frustration: people are taxed when they earn, taxed when they spend and taxed when supporting their families.
Industry bodies such as the Confederation of Zimbabwe Industries have cautioned that excessive taxation risks driving companies into the informal sector, further reducing formal employment and complicating the government’s revenue goals. Informal traders argue that high customs duties and transaction taxes inflate costs, making it harder to compete with cheaper smuggled goods. This cycle contributes to higher consumer prices and fuels inflationary pressures.
Beyond the weight of taxation, citizens increasingly question the value they receive in return. Consumer-rights advocates note that while revenue collection has improved, service delivery remains weak. Public health facilities lack medicines, infrastructure continues to deteriorate and electricity supply remains unreliable. This disconnect between tax collection and public service delivery has intensified calls for accountability and transparency.
Economists point out that Zimbabwe’s tax-to-GDP ratio is among the highest in the region. While this suggests strong collection capacity, it also exposes structural inequities, as consumption-based taxes disproportionately affect low-income households and the IMTT penalises the shift toward digital payments. Business leaders are urging the government to adopt a new fiscal approach that prioritises production incentives, reduces consumption taxes and eliminates wasteful expenditure. Corruption within the public sector remains a central concern.
As Finance Minister Mthuli Ncube prepares to announce the 2026 budget, expectations are high and trust is fragile. Citizens want relief and clarity. Businesses want policy predictability. Across the board, there is a demand for a tax system that is fair, efficient and directly tied to tangible improvements in national services and infrastructure. Until meaningful reform is delivered, the sentiment that “we are overtaxed” will continue to dominate public and economic discourse.