Delta keeps revenue flowing as US$14,6 million tax fight with ZIMRA drags on

HARARE – Delta Corporation, Zimbabwe’s largest beverage producer, recently said it paid US$315,2 million in taxes to the national fiscus in the year to December 31, 2025, but remains locked in a multi‑million‑dollar dispute with the Zimbabwe Revenue Authority (ZIMRA).

According to Treasury and company figures, the tax bill represented about 39 percent of Delta’s US$807,47 million revenue for the period and was 24,7 percent higher than the US$252,8 million remitted in 2024, a rise attributed to volume recovery, pricing actions and efficiency gains.

The group also reported a 5 percent increase in revenue to US$807,47 million and a 15 percent jump in profit after tax to US$116,15 million, supported mainly by lager and sorghum beer volumes despite inflationary pressure and the introduction of sugar taxes.

However, despite its growing contribution to the fiscus, Delta is still contesting tax assessments raised by ZIMRA and has already paid about US$14,6 million under the country’s “pay now, argue later” regime while the matter winds its way through the courts.

The dispute centres on how certain taxes should have been calculated and settled in prior years, with the company maintaining that it complied with the law at the time and is seeking judicial relief on both legal and factual issues.

Management has indicated that engagements with ZIMRA are continuing in parallel with the legal appeals, even as Delta keeps honouring its current tax obligations and maintaining payment plans tied to the contested amounts.

“The company remains an exemplary taxpayer, always meeting its tax obligations in full and timeously across the various tax heads.

“The company continues to engage with ZIMRA and the fiscal authorities in pursuit of an amicable resolution to the matters, while appealing key legal and factual aspects of the assessments with guidance from tax experts and legal counsel.

“These assessments have a material impact on the Group’s operations, if upheld in their current form.

“Ambiguities in the tax legislation remain pervasive, increasing the risk of further interpretation disputes under the existing tax framework.

“At this stage, the Board cannot estimate the likely outcome or timing of the resolution of these matters.

“The current accounting treatment and disclosures of the assessments and the amounts paid so far are considered to be appropriate,” the Zimbabwe Stock Exchange listed company stated.

Delta Corporation Limited is currently the number one most valuable stock on the ZSE with a market capitalisation of over close to US$1 billion.