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Mthuli Ncube Unveils ‘Creative’ Tax Measures in 2025 Budget Finance Minister Mthuli Ncube on Thursday unveiled a series of new taxes targeting fast foods, sports betting winnings, and small businesses as the government seeks to shore up its revenue base amid fiscal challenges.
Presenting the 2025 national budget in Parliament, Ncube announced a 10 percent withholding tax on sports betting winnings, effective January 1, 2025. “Betting is increasingly popular, as evidenced by the proliferation of sports betting houses,” Ncube said.
“Sports betting winnings currently escape taxation, so I propose to include punters in the tax base with a 10 percent tax on their gross winnings.”
The minister also introduced a 0.5 percent fast-food tax on sales of items like pizza, burgers, hot dogs, and French fries, aimed at promoting healthier lifestyles. The levy, also effective January, seeks to discourage consumption of highly processed foods linked to obesity and non-communicable diseases.
In response to industry complaints, Ncube revised a special surtax on beverages with high sugar content, reducing the levy on cordials from US$0.001/g to US$0.0005/g, creating parity with ready-to-drink beverages.
Targeting the informal sector, Ncube mandated small businesses such as hardware operators, car dealers, boutiques, and grocery stores to register with the Zimbabwe Revenue Authority (ZIMRA) and maintain proper transaction records. Businesses failing to comply could face forced closures or be compelled to pay corporate tax ranging from US$9,000 to US$15,000 quarterly.
Residential property owners who convert homes to business premises will now pay a 25 percent rental income tax, with companies renting such properties required to disclose lease details to ZIMRA.
Despite the measures, Ncube acknowledged challenges in managing public spending, announcing a freeze on government recruitment except in critical sectors like health and education. “Revenue enhancement measures will complement efforts to contain employment costs, which now account for 56.4 percent of revenue,” he said.
In a rare reprieve for taxpayers, the minister revised tax bands following recent currency devaluation. The new tax-free threshold is ZiG 2,800 per month, with employees earning up to ZiG 8,400 paying 20 percent tax and higher earners taxed at 40 percent. Ncube forecasted government revenues of US$7.5 billion in 2025 against expenditures of US$7.7 billion, predicting a 6 percent economic growth rate for 2024.
The budget, while innovative, faces scrutiny over its impact on struggling households and businesses amid Zimbabwe’s ongoing economic challenges.
