Zimbabwe Introduces New Tax On Bolt And inDrive Rides: Here’s How It Will Work

Zimbabwe Introduces New Tax On inDrive, Bolt And Other E-Hailing Services

The Zimbabwean government has announced a new tax targeting the country’s growing digital economy, directly impacting popular e-hailing services like inDrive and Bolt. The measure was revealed by the Ministry of Finance as part of the 2026 National Budget presentation on Thursday, 27 November 2025. This move forms a key part of a broader strategy to increase revenue collection from digital platforms, a sector that has previously been difficult for the taxman to track.

The new levy is officially termed a Digital Services Withholding Tax. It will be applied to payments made to offshore digital platforms, with e-hailing fees specifically mentioned. The tax will be collected at the source, meaning financial institutions and other paying agents will be responsible for withholding the tax before the funds are sent overseas.

How The New E-Hailing Tax Will Work

The technical implementation of the tax will see paying agents, such as banks, deducting the amount before it leaves Zimbabwe. This method is designed to ensure compliance from international companies. The government has stated this tax is being introduced in lieu of Value Added Tax (VAT) on these imported services.

This initiative follows a clear warning from the Zimbabwe Revenue Authority (Zimra) in September 2025 that it was strengthening its digital tax collection capabilities. Speaking at a conference in Victoria Falls on 26 September 2025, Zimra Commissioner for Domestic Taxes, Misheck Govha, outlined the authority’s ambitious plans.

“As part of Zimra’s plan to digitalise, we are going to be coming up with an e-commerce platform from 2026. This will be covering issues like BNBs and e-hailing services like inDrive,” said commissioner Govha.

He emphasised that the net would be cast wide to ensure full compliance from all players operating in the digital space, regardless of their size.

“We have no one we are going to leave behind as far as registration is concerned, for those who are BNBs and inDrive. Even if you own the vehicle, make sure that it is properly registered and is actually subscribed according to the laws of the country,” he said.

Potential Implications For Consumers

The introduction of the Digital Services Withholding Tax raises several important questions about its potential impact on consumers who regularly use e-hailing services like inDrive and Bolt. While the exact percentage rate of the new tax has not been specified in the initial announcement, the structure suggests it could lead to increased costs for riders.

Industry analysts suggest that international e-hailing platforms may choose to pass this additional tax burden directly to consumers through higher fares or by introducing new service fees. Alternatively, they might absorb the cost by reducing commissions paid to drivers, which could affect driver earnings and potentially service availability. The timing is particularly sensitive given that some Zimbabweans have come to rely on services like inDrive and Bolt for daily transportation needs.

A Broader Tax Shake-Up And Political Pressure

The introduction of the digital tax coincides with other significant proposed tax changes announced in the same budget. One of the most notable is a proposed review of the controversial Intermediated Money Transfer Tax (IMTT). The Minister of Finance, Mthuli Ncube, proposed reducing the IMTT on local currency transactions from 2% to 1.5%, while maintaining the 2% rate on fUSD transactions.

This proposal comes after intense political pressure. Just weeks earlier, on 18 October 2025, the ruling ZANU PF party passed a resolution at its annual conference demanding the complete removal of the 2% tax. Minister Ncube had previously defended the tax stating it was essential for government survival.

Why Target The Digital Economy?

The government’s focus on digital services like e-hailing is part of a global trend where tax authorities are seeking a fair share of revenue from the digital marketplace. Commissioner Govha explained the legal basis for taxing international operators, ensuring a level playing field.

“We have put up a law that compels even someone who is operating outside the country or jurisdiction to be taxed in Zimbabwe and that law is applied to other e-platforms,” he said.

“This is why we are saying to everyone, whether you are outside the country or you are inside the country, the treatment is the same. The source of the revenue is Zimbabwe and as such we have to take that.”