Harare City Council to Cut Business Licence Fees to Boost SMEs
The Harare City Council has approved sweeping reductions in business licence fees.
The move will cut costs by up to 50 percent as part of its 2025 budget to ease the burden on businesses.
Also Read: President Mnangagwa Orders Swift Review of Business Licences and Levies to Boost Investment
Relief for Small Businesses
Under the revised fee structure, small shops operating in spaces below 50 square metres will now pay a flat annual licence fee of US$200, down from US$400.
Hairdressers will also benefit from a significant reduction, with fees dropping from US$460 to US$230, while non-food traders will now pay US$58 instead of US$115.
The move is designed to attract investment, support small businesses and encourage informal traders to formalise their operations, with officials describing the new tariff structure as a catalyst for economic activity.
Also Read: Zimbabwe To Reduce Taxes and Business Licence Fees in 6 Months
Sharp Drop in Bank Tariffs
One of the most dramatic changes affects the banking sector, where licence fees have been reduced from US$5 750 to just US$250.
The local authority said the sweeping reductions are intended to create a more business-friendly environment across multiple sectors.
Conditions for Eligibility
Despite the reductions, the city has set conditions for businesses seeking to benefit from the lower fees.
Operators are required to settle their property taxes in full and present a valid tax clearance certificate in line with provisions of the Income Tax Act.
Aligning with National Reforms
The council’s measures come as Zimbabwe intensifies efforts to improve the ease of doing business under the National Development Strategy 2 (NDS2).
Recent government reforms have also seen licence fees slashed across key sectors, including tourism and aviation, with some charges reduced by more than half and others scrapped entirely.
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