HARARE – Zimbabwe has yet to collect any revenue from the wealth tax nearly two years after its introduction, with the Ministry of Finance confirming that implementation remains suspended pending finalisation of administrative and legislative modalities.
Deputy Minister of Finance, Economic Development and Investment Promotion, Kudakwashe David Mnangagwa, told Parliament this week that collections have not begun because the government is still refining procedures to address concerns raised by stakeholders.
“Since the introduction of 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 administrative modalities informed by the concerns raised by some stakeholders,” Mnangagwa said.
He added that amendments would be tabled before Parliament to pave the way for the tax to take effect.
Responding to a follow-up by Emakhandeni-Luveve MP, Discent Collins Bajila, who suggested the law be repealed and reintroduced later, Mnangagwa maintained that the tax had only been postponed, not abandoned.
“Up until the modalities, both administratively and the legislative amendments have been refined after consultations again with this august House, these amendments will come before the same,” he said.
The wealth tax was introduced in January 2024, targeting residential properties valued above US$250,000 and owned by individuals under the age of 70.
Set at 1 percent of the property’s value, with a ceiling of US$50,000 per year, it was initially designed to be collected by local councils alongside property rates, before later transitioning to the Zimbabwe Revenue Authority (ZIMRA).
Authorities had argued that the levy would provide an additional revenue stream for critical urban infrastructure such as roads, water supply systems, sewage networks and health facilities.
However, according to government financial accounts reviewed in 2024, no money was collected in the first eight months after its enactment.
Experts have attributed the delays to administrative hurdles, particularly around property valuation and the role of local authorities in tax collection.
ZIMRA has previously indicated that it is studying similar systems in other countries and working with the Ministry of National Housing to establish a comprehensive valuation roll.
Critics have questioned both the feasibility and fairness of the tax. Some analysts argue that the measure risks burdening pensioners who rely on rental income from high-value properties but lack other sources of wealth.
Others warn that weak local government capacity may undermine effective implementation.
Despite these concerns, Finance Minister Mthuli Ncube has defended the policy, describing it as a step towards a fairer tax structure that ensures the wealthy contribute more to national development.
For now, the wealth tax remains in limbo, with the government insisting that collections will only begin once administrative frameworks and legislative refinements are complete.
