Digital Services Tax
As taken from X/Twitter x.com/ChipoMusarurwaS Image by TAKBATANA [Click on Image for a larger version - opens in a new window]
The recent introduction of the Digital Services Tax is not just another levy it is an act of economic aggression against a population already stretched to its limits.
But while this new tax has rightly sparked outrage, it is merely the tip of the iceberg. Everything is going up this year. Why? Because the government has quietly increased the Value Added Tax (VAT) to 15.5%.
This isn’t just a number on a spreadsheet it’s a direct hit to every household’s budget. It means:
- School fees will rise, making education even more inaccessible for struggling families.
- Groceries will cost more, forcing parents to choose between meals and rent.
- Fuel and transport will spike, driving up the price of everything else.
- Electricity, mobile data, gym subscriptions, clothing, medicine nothing is spared.
This is not fiscal policy. It is extortion masquerading as governance. A Government That Takes and Takes
What do we get in return for these taxes? Crumbling roads. Empty hospitals. Underpaid teachers. Power cuts. Water shortages. A currency in freefall.
A government that taxes so much yet delivers so little is not just inefficient it is indifferent. It is a government that has lost its moral compass, prioritizing revenue collection over public service.
The Digital Services Tax, in particular, is a slap in the face to young entrepreneurs, freelancers, and small businesses who rely on digital platforms to survive. Instead of nurturing innovation, the state is punishing it. Instead of supporting the digital economy, it is stifling it.
Taxation, in any functioning democracy, is a social contract. Citizens contribute to the national purse with the expectation that their money will be used to build schools, hospitals, roads, and a better future. In Zimbabwe, that contract has been broken. The state demands more and more, while giving less and less.
This is not just an economic crisis it is a crisis of leadership. We cannot tax our way out of mismanagement. We cannot build a nation on the backs of the poor while the powerful live in luxury.
We need leaders who understand that governance is about service, not survival. Leaders who see citizens not as cash cows, but as partners in development. Zimbabwe is rich in talent, resources, and resilience. But we are being held back by a political class that has run out of ideas and out of touch with reality. It’s time to say enough. We need new leaders. We need a new vision.
We need a government that works for the people not against them. Zimbabwe deserves better.
NOTE: We as ZHRO/ZEXIT have duplicated this well written article from X/Twitter - we have cited the author and the image author too.
POST SCRIPT: Text version of Image below to aid clarity
DESPERATE MTHULI BANKS ON AN ILLEGAL TAX: ZIMBABWE FINANCE MINISTER
HARARE: Zimbabwe’s newly introduced 15% Digital Services Withholding Tax on Visa, Mastercard and PayPal payments is illegal and unenforceable, legal experts and economists have said, warning that Finance
Minister Mthuli Ncube has exceeded his authority by attempting to alter tax law through an administrative directive rather than a parliamentary amendment.
The tax, announced in the 2026 National Budget, was presented as a levy on imported digital services supplied by offshore platforms, payable in lieu of VAT. Treasury said the measure was designed to broaden Zimbabwe's tax base by capturing income earned by foreign digital companies from local users.
However, controversy escalated after a 5 January 2026 Treasury directive instructed the Zimbabwe Revenue Authority (ZIMRA) to withhold the tax at the point of payment on cross-border transactions processed by banks, card schemes and other regulated payment intermediaries.
The directive acknowledges that Clause 44 of the Finance Act 7 of 2025 was incorrectly drafted, as it appeared to apply the tax to payments for both goods and services supplied from outside Zimbabwe. Treasury directed ZIMRA to apply the tax only to imported services while continuing to charge VAT on imported goods, pending correction of the error by the Attorney General's Office.
Commenting on the move, lawyer and opposition figure Fadzayi Mahere said the attempt to correct legislation through a letter was unlawful.
“If you want to tax people beyond what is stated in the law, you must amend the Finance Act in line with due process,” Mahere said in a public legal analysis. “The law may be bad, but attempting to amend it through a directive is patently unlawful and invalid. Taxes are a product of Parliament and cannot be changed single-handedly.”
Panic, payment flight and investor concerns
The implementation has already sparked panic among Zimbabwean consumers and businesses, with financial institutions reporting increased interest in using banking systems in neighbouring countries to avoid the tax. Economists warn that the move risks accelerating financial disintermediation, undermining the formal banking system and shrinking the domestic tax base.
Market analysts also flagged rising investor unease, saying the use of administrative directives to reinterpret fiscal law heightens policy risk. “When tax rules can change by letter, investors factor that uncertainty into pricing immediately,” said an economist at a regional advisory firm. “The result is delayed investment, capital flight and higher risk premiums".
Dated: 7 JAN 2026
KEY LEGAL & ECONOMIC RISKS
Ultra vires enforcement:
Courts may strike down taxes imposed beyond statutory authority
Litigation exposure:
Banks and payment intermediaries risk legal claims for unlawful deductions
Capital and payment flight:
Consumers and firms may shift transactions offshore
Investor deterrence:
Regulatory unpredictability raises country risk
Revenue erosion:
Reduced formal activity may ultimately shrink collections