Zimbabwe’s latest national budget has tightened its grip on the digital economy with a new tax targeting popular e-hailing offshore platforms like inDrive, Bolt and online streaming satellite-based internet providers such as Starlink
Presenting the 2026 National Budget to Parliament on yesterday, finance minister Mthuli Ncube unveiled the Digital Services Withholding Tax in 2026 in a sweeping shift designed to modernise the country’s tax landscape and capture revenue from the fast-growing online economy.
Presenting the 2026 National Budget to Parliament on Thursday, finance minister Ncube said the new levy would replace VAT on imported global technology-driven services and will be collected directly by banks and other paying agents before funds leave the country.
“This tax ensures that Zimbabwe gets its fair share from global digital platforms earning revenue from our market. The digital economy has evolved faster than our tax system and we are now closing that gap,” he said.
The tax affects any payments made to offshore digital operators, with e-hailing services expected to be the most immediately impacted.
While the final tax rate has not yet been published, market indicators warn that ride-hailing fares are likely to rise as Bolt and inDrive may pass the extra cost onto consumers. Online streaming subscriptions and satellite internet users may face similar increases.
Ncube defended the move as normal business practice as the country fast embraces the digital era. “We are not targeting consumers, but ensuring equity in the tax system. Those profiting from Zimbabwean users must contribute to the fiscus just like local businesses do,” said the Zimbabwe finance minister.
The 2026 Budget, crafted as a key instrument for the National Development Strategy (NDS2), also introduced major shifts to mobile money transaction and consumption taxes.
Chief among them is the reduction of the Intermediated Money Transfer Tax (IMTT) on the local ZiG currency-denominated payments, dropping from 2% to 1.5% to encourage wider use of the local domestic currency. Popular mobile money and banking platforms, including EcoCash, OneMoney, Paynow, and bank-to-bank transfers, will benefit from the lower IMTT.
“To promote and strengthen the use of the ZiG, we have reduced the IMTT on local currency transactions. This relief is necessary to support transactional activity and confidence in the currency,” said Ncube.
However, to offset the lost revenue from the IMTT cut, the minister proposed raising VAT from 15% to 15.5%, effective 1 January 2026, a move that will slightly increase the cost of goods and services across the economy.
The broader budget projects GDP growth of 6.6% in 2025, a narrowing fiscal deficit of $105.9 million (ZiG3.2 billion), and a rising current account surplus expected to hit US$1.4 billion in 2026.
According to the budget, as Zimbabwe deepens its digital tax framework, consumers can expect subtle but noticeable price shifts, cheaper local money transfers, but potentially higher digital service bills, ushering in a new chapter in the country’s evolving digital economy.
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