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Nelson Gahadza
Senior Business Reporter
Treasury may review its position on some of the taxes in the 2025 National Budget proposals to address certain concerns raised by captains of industry and commerce and economists.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said this during the 2025 post-budget breakfast meeting in Harare on Monday.
Minister Ncube said in some instances, the Government was already undertaking studies to see the impact of certain taxes on businesses.
“We have directed the Treasury to do a study on the impact of the intermediated money transfer tax (IMTT) on businesses, and we are ready to review based on the results of the studies.
“Therefore, I encourage more businesses to come forth with their submissions on the impact of the IMTT.
“We have January and the midterm policy review, where we could make some adjustments based on actual facts on the ground,” he said.Business leaders contend that the 2 percent IMTT tax has hurt businesses’ performance, reducing profit margins, sales, and competitiveness.
They also say the IMTT has contributed to increased overheads that include staff costs, electricity charges, rentals, bank charges, cleaning expenses, and security charges.
The finance minister however said the tax measures were meant for the good of the economy, including those relating to health issues, protecting local industries, and the environment.
For instance, Minister Ncube noted that he had been under pressure to close companies that produce plastic bags, but opted for a surtax charge on all plastic bags instead.
“The budget has got some green aspects, such as the tax on carrier bags. In other countries they have banned those plastic bags, but over the years I have resisted that ban, but there has been a push; hence I said, no, we would rather have a surtax on and not kill industries,” he said.
Minister Ncube said even the tax on fast foods was progressive, as the resources would be deployed in the health sector.
“We saw that there is likely to be limited funding in the health sector due to changes happening on the global landscape.
Therefore, the funds raised through the food taxes will go a long way in bridging some of the gaps,” he said.
Minister Ncube added that promoting and incentivising the development and investment of charging stations for electric vehicles was also progressive green taxes that most nations have been looking into, and Zimbabwe was no different.
The minister said the 2025 fiscal plan proposed to provide incentives for local manufacturing, particularly in the automotive sector, which includes car and bus assembly.
He said the initiative is part of broader efforts to stimulate local industry and reduce import dependence.
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