Government has pressed pause on the rollout of Zimbabwe’s wealth tax, with officials saying more time is needed to fine-tune the administrative and legislative framework before collections can begin.
Deputy Minister of Finance, Economic Development and Investment Promotion, Kudakwashe Mnangagwa, told Parliament last week that although the levy was legally in place, implementation had been “temporarily shelved” to allow for further consultations and adjustments.
“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, pending conclusion of requisite administrative modalities informed by the concerns raised by some stakeholders,” Mnangagwa said during a question-and-answer session.
The tax, introduced earlier this year as part of fiscal reforms, was designed to expand the revenue base and address wealth inequality by targeting high-net-worth individuals and households.
Assets such as property, shares, and other investments were expected to fall under its scope.
However, questions quickly arose around enforcement. Tax experts and legislators expressed concern over whether the Zimbabwe Revenue Authority had the capacity to accurately track, value, and monitor wealth holdings.
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Without clear mechanisms, critics warned, the tax risked missing its targets while creating loopholes for avoidance.
During the debate, Emakhandeni-Luveve legislator Collins Bajila challenged the government to consider repealing the measure, arguing that no revenue had been generated since its passing.
Mnangagwa dismissed the suggestion, saying repealing the law would be counterproductive. “We have temporarily shelved it until the administrative modalities have been sorted out and figured out.
Repealing and then reintroducing it would only prolong the process. It is a matter of process … but the intention is the same.”
Government maintains that once refinements are complete and Parliament approves the necessary changes, the tax will be enforced.
Officials argue that the levy remains critical in ensuring that Zimbabwe’s wealthiest citizens make a fair contribution towards national development, alongside existing income and consumption taxes.
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