Zimbabwe Wealth Tax Paused Amid Implementation Concerns

The policy was initially introduced to tackle wealth inequality and broaden the country’s narrow revenue base, moving beyond traditional income and consumption taxes. However, its rollout has been stalled due to significant practical challenges.

Zimbabwe Wealth Tax Paused Amid Implementation Concerns

Addressing the National Assembly, Deputy Minister Mnangagwa clarified the government’s position, stating that the delay is necessary to establish a robust system for assessment and collection. He emphasised that the pause is only temporary.

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“Since the introduction of legislation requiring selected wealthy individuals to contribute to the fiscus through a wealth tax, our Government temporarily shelved the implementation thereof,” Mnangagwa told MPs. “This is pending conclusion of requisite administrative modalities informed by the concerns raised by some stakeholders.”

He further explained that revenue collection will only commence after these refinements are complete and have received parliamentary approval. This careful approach, he argued, is preferable to repealing the law entirely, which would only cause further delays down the line.

Experts Question Practical Implementation Of The Wealth Tax

The core of the delay stems from serious concerns over the Zimbabwe Revenue Authority’s (ZIMRA) capacity to effectively identify, evaluate, and monitor the complex asset holdings of high-net-worth individuals. A wealth tax is typically applied to the total market value of personal assets, including real estate, investment portfolios, and shares.

Financial experts had previously warned that without a watertight system, the government risked creating massive loopholes, leading to widespread non-compliance and failure to meet revenue targets. This would defeat the tax’s very purpose of funding vital social services and public infrastructure.

Emakhandeni-Luveve Member of Parliament, Collins Bajila, directly questioned the Deputy Minister on whether the government would consider scrapping the tax altogether, given that it has yet to generate any income.

Government Remains Committed to Implementing Wealth Tax

In response, Deputy Minister Mnangagwa remained firm on the policy’s ultimate goal, dismissing calls for a full repeal. He reiterated that the government is fully committed to implementing the tax once the proper frameworks are securely in place.

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“The honourable member would have us repeal the legislation and then bring it back again before this august House. I would think that amendments would still need to come before this same House. It is a matter of process, but the intention is the same,” he stated.

The government’s stance is that this wealth levy is essential for ensuring a fairer contribution from the country’s economic elite towards national development projects.