Harare, (New Ziana) – Zimbabwe’s new wealth tax is not yet being collected as it was temporarily shelved pending the conclusion of administrative modalities, an official has said.
The wealth levy was effective January 1, 2025. Home owners whose properties have a value of US$100 000 or more are expected to pay a ‘wealth tax’ equal to 1 percent of the value.
Funds derived from the levy will be ring- fenced towards urban infrastructure development, in particular roads, water, sewer and community health centers.
Finance and Economic Development and Investment Promotion deputy minister Kudakwashe Mnangagwa told Parliament the tax requiring wealthy individuals to pay a levy was not yet effective.
“Since the introduction of the 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 administration modalities informed by the concerns raised by some stakeholders,” he said.
He said Parliament had to first approve the refined modalities to allow for wealth tax collections to begin. “The additional administration modalities and legislative amendments thereof, will thus be tabled before Parliament for approval, paving way for implementation of the tax. “Revenue collection will thus commence after the refinement of the modalities,” said Mnangagwa.
But Emakhandeni- Luveve MP, Discent Bajila suggested the wealth tax should be scrapped. “Given that there are no legislative instruments for collecting this wealth tax, would it not be better to consider scrapping it off?” he asked.
New Ziana
