‘Anti-People Budget’: Fadzayi Mahere Slams IMTT, VAT Increase

Fadzayi Mahere Slams IMTT and VAT Increase in 2026 Budget

Prominent lawyer and opposition figure Fadzayi Mahere has criticised the proposed amendments to Zimbabwe’s tax regime, describing them as “anti-people, anti-productivity and anti-progress.

Also Read: Mthuli Ncube Reduces 2 Percent IMTT Tax For ZiG Transactions

VAT Increase Overshadows IMTT Reduction

Speaking on her X account, Mahere said the proposed reduction of the Intermediated Money Transfer Tax (IMTT) from 2% to 1.5% for ZWL electronic transactions was “an absolute non-event.”

“The proposed “reduction” of IMTT from 2% to 1,5% for ZWL electronic transactions is an absolute non-event. The Minister is pretending to give with one hand then taking a lot more with the other because Value Added Tax has been increased by 0,5%.”

Mahere argued that the slight reduction in IMTT would be nullified by the simultaneous increase in the Value Added Tax (VAT) from 15% to 15.5%, which applies to all goods and services, in both ZWL and USD transactions.

“VAT is a tax that cuts across just about all sectors and all services which means that the price of all goods and services is going to go up to accommodate this increase,” she said, adding that the measure would further fuel inflation and make goods and services less affordable.

IMTT Remains Costly for USD Transactions

The lawyer also pointed out that the IMTT reduction only applies to ZWL electronic transactions, while USD transactions remain subject to the full 2% tax.

“The proposed 0,5% reduction in IMTT excludes USD electronic transactions which will continue to be costly by virtue of this extortionate 2% tax. Why reduce the IMTT only for ZWL transactions yet when increasing VAT, the increase is for transactions in all currencies including USD?” she questioned, calling for the complete scrapping of the IMTT.

Citizens Back Mahere’s Criticism

Several Zimbabweans expressed agreement with Mahere’s assessment, highlighting the financial strain on individuals and businesses due to the new measures.

Many warned that the combined effect of higher VAT and continued IMTT on USD transactions could stifle productivity and increase the cost of living.