Zimbabwe Introduces New E-Commerce Tax Targeting Payments To Streaming Platforms Like Netflix, Spotify, Youtube, Etc: EXPLAINER

Mthuli Ncube Introduces New E-Commerce Tax Targeting Streaming Platforms And Online Content

Finance Minister Mthuli Ncube has launched a major new tax initiative aimed directly at the digital world. The new e-commerce tax will target payments to streaming platforms, online content providers, and other digital services. The announcement was a key part of the 2026 National Budget presented on 27 November 2025. This move confirms the government’s plan to tap into the growing digital economy, following warnings from the tax authority that it would leave no one behind.

The new tax is called a Digital Services Withholding Tax. It will be applied to money sent to international online companies. The goal is to ensure these foreign platforms contribute to the national treasury.

What The New Tax Targets: Your Digital Spending

The budget statement from the Ministry of Finance provides a clear list of the services that will be affected by this new tax. The government is specifically targeting payments made to “offshore digital platforms.”

According to Minister Mthuli Ncube, this includes three main categories:

“e-hailing fees, online content charges and satellite-based internet access fees.”

This means the tax could directly apply to a wide range of everyday digital services used by Zimbabweans. For example, this includes payments for international ride-hailing apps like inDrive and Uber. It also targets “online content charges,” which covers subscriptions to global streaming services like Netflix, Showmax, Disney+, and YouTube Premium. Furthermore, payments for music streaming on Spotify or Apple Music would also likely be included. The tax also explicitly names “satellite-based internet access fees,” which would target services like Starlink.

This initiative builds on a warning from the Zimbabwe Revenue Authority (Zimra). On 26 September 2025, Zimra Commissioner for Domestic Taxes, Misheck Govha, stated their intention to ensure everyone pays their fair share.

“We have no one we are going to leave behind as far as registration is concerned, for those who are BNBs and inDrive,” said commissioner Govha.

How The Tax Will Work And What It Means For You

This new tax will function as a withholding tax. This means the deduction will happen automatically during the payment process. The responsibility will fall on local banks and financial institutions inside Zimbabwe.

According to the official budget statement, the tax will be withheld by “paying agents that include financial institutions.” In practice, this means when you use your local bank card, mobile money, or any other Zimbabwean payment method to pay for an international service like Netflix or inDrive, your financial provider will deduct the tax before the payment is processed out of the country.

For consumers, this could lead to several outcomes. The most direct impact could be an effective increase in the price of these services. If a streaming subscription costs US$10 per month, the new withholding tax would be applied on top of that.The exact amount of the tax rate was not specified in the budget statement.

Alternatively, the international platforms themselves could choose to absorb the cost of the new tax. However, the structure of the tax as a withholding levy on payments made to the platforms makes this outcome less likely, as the money is deducted before it reaches them.

The Bigger Picture: Other Tax Changes

The new digital tax was not the only significant change announced. Minister Ncube also addressed the controversial Intermediated Money Transfer Tax (IMTT), commonly known as the 2% tax. He proposed a partial reduction in this levy.

The budget statement read:

“Review of Intermediated Money Transfer Tax from 2% to 1.5% in order to promote use of local currency and lower transaction costs. IMTT on foreign currency transactions will be maintained at 2%.”

This change comes after intense pressure, including a resolution from the ruling ZANU PF party in October 2025 demanding the tax be scrapped. However, the Minister also proposed a separate increase to the standard VAT rate. The VAT rate will increase by 0.5% to 15.5%, effective 1 January 2026.