Wealth Tax on High-Value Properties Awaits Rollout

Zimbabwe’s long-delayed wealth tax on properties over US $250,000 remains stalled (image source)

Zimbabwe’s wealth tax, introduced nearly two years ago to target high-value residential properties, remains in limbo as authorities race to finalise the administrative and legislative framework needed for its rollout.

Enshrined in a 2023 amendment, the law imposes a 1 percent levy on properties valued above US $250,000, with proceeds earmarked for urban infrastructure projects. Government initially hoped the measure would deliver a steady revenue stream for roads, water systems, and clinics in major cities. Yet, despite its potential, the Zimbabwe Revenue Authority (ZIMRA) has not collected a single dollar due to valuation delays and incomplete systems.

Financial statements reviewed by The Herald confirm zero wealth tax income as of November 2024, sparking criticism over the government’s implementation capacity. Officials had projected the tax would channel millions into infrastructure renewal. However, without a completed General Valuation Roll and clear mapping of taxable dwellings, revenue mobilisation has stalled.

Finance Minister Prof. Mthuli Ncube acknowledged these hurdles in a recent parliamentary session. He revealed that local authorities will initially handle property assessments, with councils submitting valuations before ZIMRA assumes full collection responsibilities.

“We are working closely with municipal councils to ensure properties are correctly valued and to streamline the collection process,” Ncube said, but declined to commit to a new rollout date.

Tax consultants have cautioned that prolonged delays could undermine public trust in fiscal reforms. A Harare-based advisor warned that property owners might launch legal challenges if presented with abrupt bills without adequate notice or transparent appeal systems. Stakeholders have since called for a comprehensive implementation roadmap, complete with clear timelines, digital self-assessment platforms, and dispute-resolution mechanisms.

Experts argue that if successfully operationalised, the wealth tax could unlock a vital revenue stream at a time when Zimbabwe faces widening budget deficits and waning donor support. Development economists note that similar levies in emerging markets such as Brazil and South Africa have raised hundreds of millions annually, helping governments to expand public services.

To accelerate rollout, policy analysts and local government associations have recommended:

• Publishing a detailed implementation schedule with milestones for valuation and billing.

• Establishing an online self-assessment portal for property owners and tax professionals.

• Training municipal assessors on standard valuation methodologies.

• Setting up an appeals tribunal for swift dispute resolution.

• Launching a public awareness campaign to explain obligations and benefits.

Some progress is underway. Local government associations, backed by the Urban Development Fund, have begun piloting valuation workshops in Harare West and Bulawayo. These pilots are testing data collection tools and citizen engagement strategies, with findings expected to be presented at a national conference in early 2026.

For now, both property developers and homeowners remain in a holding pattern, awaiting clarity on their liabilities. Analysts warn that the credibility of the reform hinges on whether the government can convert legislative ambition into revenue collection.

If implemented effectively, the wealth tax could become a cornerstone of Zimbabwe’s urban renewal strategy—funding roads, water networks, and clinics that directly benefit communities. But with each delay, scepticism grows. The coming months will reveal whether the state can demonstrate fiscal innovation or whether the reform risks being remembered as another stalled policy.