HARARE – Zimbabwe’s leading industrial body, the Zimbabwe National Chamber of Commerce (ZNCC), has urged the Government to introduce digital taxation on global technology firms such as Google, Meta, Microsoft and Netflix, arguing that the move could strengthen the country’s fiscal position and help restore balance to an overburdened tax system.
In its submission to Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube ahead of the 2026 National Budget, the ZNCC said the proposal is part of a wider strategy to rebuild a tax base severely eroded by the informalisation of nearly 76% of the economy.
The Chamber said the rebasing of Zimbabwe’s Gross Domestic Product (GDP) earlier this year to US$44.4 billion from US$35.2 billion had shifted key fiscal ratios, exposing the fragility of the country’s revenue structure. Despite the nominal increase, the tax-to-GDP ratio fell sharply from 18% to around 14%, placing Zimbabwe well below the median range of 22% to 25% for lower-middle-income economies.
“With 96% of total revenue being tax-based, Zimbabwe’s fiscal structure remains narrow and excessively dependent on a limited base,” the ZNCC said in its report. “Further taxing the already compliant formal sector risks suppressing productivity. The focus must now shift toward growth-driven revenue expansion, formalisation, and digital transformation of tax administration.”
The ZNCC urged Treasury to require non-resident digital service providers such as Meta, Google, Microsoft and Netflix to register for income tax on services consumed in Zimbabwe, aligning the country with OECD best practices on cross-border digital taxation. The chamber acknowledged the limitations posed by Zimbabwe’s underdeveloped digital infrastructure but argued that such reforms were critical to fiscal sustainability.
The call comes at a time when the Government, already criticised for its heavy tax regime, is under pressure to find new revenue streams without overburdening the shrinking formal sector. Zimbabwe’s tax system is among the most stringent in the region, and the ZNCC’s proposal represents an attempt to expand the fiscal net rather than deepen existing burdens.
Globally, governments have intensified efforts to tax multinational tech firms that generate significant income from digital services in foreign markets. France, India, Kenya, and Nigeria have already introduced digital service taxes, while OECD member states are in the process of implementing the Pillar One and Two framework, which reallocates taxing rights and introduces a 15% global minimum corporate tax.
Analysts say adopting similar measures would position Zimbabwe within the global digital tax movement, aligning the country with evolving international standards while promoting tax fairness and fiscal justice.
Beyond digital taxation, the ZNCC recommended the creation of a Unified Business Registration and Tax Compliance Portal linking the Zimbabwe Revenue Authority (ZIMRA), the National Social Security Authority (NSSA) and local authorities to simplify compliance. It also proposed a one-year presumptive tax amnesty for small enterprises entering the formal economy and a 5% advance tax on digital content creators and gig economy workers to streamline collection and prevent double taxation.
According to the chamber, a robust digital tax and compliance modernisation framework could raise Zimbabwe’s tax-to-GDP ratio to between 20% and 22% by 2027, supporting the Government’s goal of achieving upper-middle-income status under Vision 2030.
Treasury traditionally presents the national budget in November, although delays into December have occurred in previous years. Minister Ncube is currently consulting with industry bodies, civil society, and fiscal experts as part of pre-budget deliberations.
Economists note that if implemented transparently and efficiently, a digital tax regime could diversify Zimbabwe’s revenue base, promote fiscal equity, and reduce dependence on an already overstretched formal sector, marking an important step toward modernising the nation’s tax system in the digital age.
