Finance
Minister
Professor
Mthuli
Ncube
made
the
announcement
while
presenting
the
2026
national
budget
on
Thursday.
The
new
tax
is
expected
to
affect
millions
of
Zimbabweans
who
use
streaming
services,
ride-hailing
apps,
online
content
platforms
and
satellite
internet
services.
Prof
Ncube
said
the
tax,
which
takes
effect
on
1
January
2026,
is
intended
to
promote
fairness
in
the
digital
marketplace
and
safeguard
the
country’s
revenue
base
as
more
services
migrate
online.
“Most
digital
subscription
fees,
commissions
and
access
charges
are
currently
paid
outside
Zimbabwe’s
borders
without
attracting
Value
Added
Tax
(VAT),
giving
foreign
digital
platforms
an
unfair
competitive
advantage
over
local
service
providers
who
are
fully
taxed
within
Zimbabwe,”
he
said.
“The
digitisation
of
economies
has
increased
the
consumption
of
online
services,
most
of
which
are
supplied
by
offshore
companies
without
a
physical
presence
in
Zimbabwe.
These
transactions
are
occurring
outside
our
tax
net,
resulting
in
revenue
leakages
and
inequitable
competition
with
domestic
businesses.”
Under
the
new
framework,
banks
and
mobile
money
operators
will
be
required
to
withhold
the
15
percent
tax
at
the
point
of
payment,
ensuring
real-time
collection
and
sealing
long-standing
loopholes
that
previously
made
enforcement
difficult.
This
means
that
whenever
a
customer
pays
for
services
such
as
Netflix,
Spotify,
Amazon
Prime,
ride-hailing
apps,
digital
content
subscriptions
or
Starlink
satellite
internet,
the
withholding
tax
will
automatically
be
deducted
before
the
payment
is
sent
offshore.
Prof
Ncube
noted
that
similar
measures
have
become
standard
in
many
jurisdictions
as
countries
adapt
their
tax
systems
to
digital
commerce,
adding
that
the
policy
is
expected
to
broaden
revenue
sources
while
creating
a
level
playing
field
for
local
companies
competing
with
multinational
tech
giants.
However,
the
announcement
sparked
backlash,
with
some
citizens
expressing
their
frustration
on
social
media.
Users
argued
that
some
platforms,
such
as
Starlink
and
InDrive,
already
include
VAT
in
their
charges,
raising
concerns
about
potential
double
taxation.
Others
warned
that
the
measure
may
push
citizens
to
obtain
foreign
visa
cards
to
make
payments
and
bypass
the
new
tax.