HARARE — Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has proposed a recalibration of Zimbabwe’s fiscal framework through a half-percent reduction in the Intermediated Money Transfer Tax (IMTT), to be offset by an equivalent increase in Value Added Tax (VAT).
Speaking at the 2026 Pre-Budget Seminar in Bulawayo, Professor Ncube said the proposal seeks to balance public calls for relief from electronic transaction taxes while preserving government revenue essential for key national programmes.
“We can reduce IMTT by half a percent, but provided we increase VAT by half a percent,” said Professor Ncube. “You don’t have to respond now — you can tell me afterwards how you feel. But we need that revenue, or else we cannot function.”
The IMTT, introduced in 2018, has become a significant revenue stream for the Treasury, funding major infrastructure projects and COVID-19 vaccine procurement during the pandemic.
While the tax has been widely criticised for burdening businesses and consumers in a largely informal economy, government officials have defended it as a necessary instrument for fiscal stability and public investment.
Economic observers say Professor Ncube’s proposal could spark heated debate among legislators, analysts and the business community as the country navigates the complex trade-off between stimulating economic growth and sustaining government expenditure.
The minister’s remarks come as Parliament and stakeholders deliberate on the 2026 National Budget, expected to outline measures that reinforce economic recovery, enhance investment confidence, and sustain macroeconomic stability.
