FINANCE Minister Mthuli Ncube has pledged to review some of Zimbabwe's most contentious taxes, including the Intermediate Money Transfer Tax (IMTT) and sugar tax, following calls by legislators for relief measures to ease pressure on businesses and consumers.
The minister also faced calls to maintain fuel subsidies to keep pump prices below US$2 per litre, a measure legislators said would help reduce production costs and ease the burden on consumers.
The proposals were raised at the ongoing 2027 National Pre-Budget Seminar in Bulawayo, where legislators urged Treasury to reduce the IMTT rate from 1.5% to 1% for local transactions and from 2% to 1% for US dollar transactions.
Industry executives have also criticised the sugar tax, arguing that the levy exceeds the value of the raw sugar itself. Major companies, including Delta Corporation, Dairibord and Innscor, have reportedly absorbed tens of millions of dollars in related charges.
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Manufacturers argue that the tax has increased local production costs and widened the price gap between locally produced beverages and cheaper imports. They say this has encouraged a surge in grey-market and smuggled beverages from neighbouring countries, which evade the tax net.
Responding to the proposals, Ncube said Treasury would assess their potential impact before making recommendations to Parliament as part of the upcoming national budget.
"We as treasurer are going to consider this. We're already considering it by the way, but I can assure you now we'll consider the proposal. Of course, we'll do analysis, and someone's already asked the speakers and colleagues about the impact of this," he said.
Ncube said the government would examine the effects of the proposed changes on revenue collection before deciding on the way forward.
"That's what we'll analyze. That's what we'll analyze in the impact of this before we also then follow up with some recommendations, decide on some recommendations to present to parliament. Then also on the sugar tax in beverages, again and others have proposed a reduction, that we perhaps align with the region, South Africa, Botswana, in the main," he said.
The minister said Treasury would also continue working to improve the ease of doing business while maintaining economic stability.
"But again, you have been very generous with your comments, positive comments on this, particularly on how we have managed to keep things stable. The stability has been because of the good that we see in our economy, and the positive trajectory that has remained," Ncube added.
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