HARARE — The government has put the brakes on collecting the newly introduced wealth tax until Parliament approves administrative measures needed to enforce it, lawmakers heard last week.
The policy, which has already been revised, was announced by finance minister Mthuli Ncube during the 2025 national budget speech. Initially, owners of properties worth US$100,000 or more were expected to pay an annual levy equal to one percent of the value.
Ncube subsequently announced that the levy would affect only second homes, not primary residencies. He also raised the threshold to properties worth at least US$250,000. The tax would be capped at a maximum US$50,000 per year for properties worth over US$5 million, he said.
The revenue would be ring-fenced for urban infrastructure development, including roads, water, sewer systems and community health centres.
Deputy finance minister Kuda Mnangagwa told Parliament that the tax was not yet effective, despite being legislated.
“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,” Mnangagwa said.
He added that the modalities and any necessary legislative amendments would be tabled before parliament for approval, after which collection of the tax would commence.
But some MPs questioned whether the tax should go ahead at all.
Emakhandeni-Luveve MP Discent Bajila argued: “Given that there are no legislative instruments for collecting this wealth tax, would it not be better to consider scrapping it off?”
The post Wealth tax put on ice for now after public outcry: minister appeared first on Zimbabwe News Now.