Government Working On Plans For Most Taxes To Be Paid In ZiG

The Government is working on having most taxes and fees be paid in the Zimbabwe Gold (ZiG) currency to increase demand and stabilise its value.

The shift comes as the ministry prepares the 2025 National Budget, set to be presented next month.

Most Taxes To Be Paid In ZiG

Finance, Economic Development and Investment Promotion Minister Prof Mthuli Ncube confirmed the government’s strategy to require taxpayers to pay a “sizeable proportion” of their obligations in local currency. He stated that customs duties are already payable in local currency, and this approach will soon extend to other taxes.

“Going forward and in line with the de-dollarisation roadmap, other taxes will also be paid exclusively in local currency, including payment for government services,” Prof Ncube said during a dialogue in Harare.

ZiG was introduced in April and promoted as a stable, adequately backed currency to bolster the economy. However, its value has remained volatile. On September 27, ZiG depreciated from US$1:ZWG13.99 to US$1:ZWG24.39 in just one day. By October 16, it had slipped further to ZiG26.6718 against the dollar.

ALSO READ: Government Sets Aside Money for Civil Servants’ Salary Increase Following ZiG Devaluation

The currency is backed by US$450 million in foreign reserves, according to Dr John Mushayavanhu, Governor of the Reserve Bank of Zimbabwe.

Taxes In ZiG — *Government Working On Plans For Most Taxes To Be Paid In ZiG [Image: File]*

In an effort to strengthen the local currency, Ncube also proposed legislation to allow companies to settle corporate income tax in both local and foreign currency on a 50:50 basis. Companies earning more than 50% of their revenue in foreign currency would be compelled to pay taxes under this split system.

Of Passports

While critics argue that fees for government services, such as passport issuance, should be paid exclusively in ZiG, the government has maintained its position that these fees remain collected in US dollars under current policy.

The fluctuating value of ZiG has raised concerns about the rising cost of living and its potential impact on the national budget. Economists warn that the volatile currency could further pressure Zimbabwe’s economy, which is already grappling with a public debt estimated at US$21 billion.

To address these challenges, Ncube stressed that the government will prioritize fiscal sustainability, maintaining a budget deficit of less than 3% of GDP and focusing on long-term stability. He also announced plans to restructure debt and issue long-term securities to manage the cost of servicing it.

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