LEADING fast food restaurant operator, Simbisa Brands has projected depressed disposable incomes in the year ahead owing to increased tax measures.
The 2026 National Budget presentation saw the inception of a raft of taxes which include a rise in Value Added Tax from 15% to 15, 5%. The Intermediated Money Transfer Tax (IMTT) for local currency (ZiG) transactions was reduced from 2% to 1.5% to encourage local currency usage but the US$ rate remains at 2%.
Digital Services Withholding Tax, a new 15% withholding tax applies to payments made to foreign digital platforms (e.g., Netflix, Starlink, and Amazon Web Services). Banks and mobile money operators act as withholding agents was introduced.
On cash withdrawals, a tiered levy now applies to US$ withdrawals at US$501 - US$1,000: 2% and above US$1,000: 3%.There are other sector specific taxes which were hiked affecting mining and agriculture among others.
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Presenting the group's performance for the period ended December 31 2025, Simbisa Brands chairman Addington Chinake projected lower incomes in the year ahead.
"While the trading environment is expected to remain broadly stable through to the financial year end, through anticipated currency stability, firm commodity prices and a strong agricultural season in Zimbabwe. However, additional fiscal tightening and tax increases introduced from January 2026 in Zimbabwe, are expected to place further pressure on consumer disposable incomes," he said.
He added that during the period, the Zimbabwean market delivered strong revenue growth of 19% year-on-year, underpinned by a 10% increase in customer volumes compared to the prior year, with 27.2 million customers served in H1 FY2026.
Customer growth was driven by enhanced customer service, a competitive pricing strategy and the continued expansion of delivery channels. Delivery orders grew 74% year-on-year, supporting a 9% increase in overall average spend over the same period, which mitigated the impact of the Company absorbing the Fast Food tax.
"The market continued to expand its footprint into prime locations while also renovating and upgrading its aging stores. Between 31 December 2024 and 31 December 2025, the Zimbabwean market refurbished 10 stores, opened 11 new stores and closed 10 stores, ending the period with 340 counters as at 31 December 2025," added Chinake.
