Finance and Economic Development Minister, Professor Mthuli Ncube has presented the 2026 National Budget outlining a series of tax adjustments and economic measures aimed at steering the country toward Vision 2030 targets.
Delivering the budget statement at Parliament, Ncube said the 2026 financial plan tabled under the theme “Enhancing Drivers of Economic Growth and Transformation Towards Vision 2030” seeks to boost economic resilience while tightening fiscal discipline.
Among the key policy shifts is the reduction of the Intermediated Money Transfer Tax (IMTT) on Zimbabwe Gold (ZiG) transactions from 2% to 1.5% while the 2% levy on US dollar transactions remains unchanged.
In a move expected to ease the burden on businesses the IMTT will now be tax-deductible and to compensate for lost revenue, VAT will rise slightly from 15% to 15.5%.
Treasury expects the economy to grow by 5% in 2026 down from the 6% expansion projected for 2025.
However, Ncube noted that budgetary pressures remain intense.
Ministries, Departments and Agencies (MDAs) submitted spending bids totaling ZiG 828.5 billionmore than three times the available resource envelope of ZiG 253 billion.
Cumulative revenue collections for 2025 are forecast at ZiG 215.7 billion (US$7.96 billion), against expenditures of ZiG 219.46 billion (US$8.10 billion).
This will leave Zimbabwe with a budget deficit of ZiG 3.8 billion (US$140.1 million) representing -0.3% of GDP.
Diaspora remittances continue to play a critical role with inflows expected to surpass US$2.7 billion in 2025 and US$2.8 billion in 2026.
The external sector is also projected to strengthen, with the current account balance improving to US$1.4 billion in 2026 up from US$1.3 billion this year.
Ncube reported that Zimbabwe’s Public and Publicly Guaranteed (PPG) debt stood at ZiG 622.3 billion (US$23.4 billion) or 44.7% of GDP as at end-September 2025.
The budget also introduces a Digital Services Withholding Tax, replacing VAT on imported digital services.
The levy will apply to payments made to offshore digital platforms, including ride-hailing apps, online streaming and content services and satellite-based internet providers.
Financial institutions and other paying agents will be responsible for withholding and remitting the tax.
The budget now moves to Parliament for debate and approval.
