Zimbabwe new tax measures introduced by Finance Minister Mthuli Ncube are anticipated to considerably raise the cost of doing business, especially for gambling operators, who will now face stricter tax oversight. In his presentation of the 2026 National Budget, Ncube detailed his approach to obtaining a significant portion of the ZWG312 billion spending plan through an expanded tax framework, which involves transitioning several sectors from Presumptive Tax to Self-Assessment.

Currently, legislation requires that operators of driving schools, commuter omnibuses, taxi cabs, haulage trucks, and commercial water vessels in the transport sector make monthly Presumptive Tax payments. However, Ncube pointed out that many of these operators continue to operate “under fiscal shadows,” characterized by tax evasion and avoidance, making the existing Presumptive Tax system ineffective.

To ensure that all operators with significant economic contributions have equal opportunities to contribute to the fiscus, Ncube proposed the following changes:

• Graduation to Self-Assessment: Public service bus operators, commuter omnibus operators with seating capacities above 25, haulage truck operators, and commercial water vessel operators will now need to register with the Zimbabwe Revenue Authority (ZIMRA) and submit income tax returns.
• VAT Monitoring for Landlords: Landlords and businesses operating from rented premises are also targeted, with proposed stricter VAT monitoring to ensure full compliance. Ncube stated that amendments would be made to standard-rate goods and services produced from mixed supplies, regardless of the current apportionment mechanism. This measure is effective from January 2026.
• Taxation of Building Societies’ Dividends: Building Societies’ dividends will now be subject to taxation.

Turning to the rapidly growing betting and gambling sector, Ncube noted that government has seen significant growth in sports betting, lotteries, and casino gaming, with industry revenues increasing between 8% and 10% annually from 2023 to 2024. He acknowledged that profit-shifting and under-declaration are prevalent. To promote responsible behavior and ensure fairness in the tax system, he proposed:

• Extension of Bookmakers Tax: The Bookmakers Tax will be extended to all licensed bookmakers, lotteries, and casino operators, with an increase from 3% to 20% of gross revenues. This will be treated as a final tax, exempting operators from Corporate Income Tax.
• Increase in VAT: Additionally, Value Added Tax (VAT) will rise by 0.5 percentage points, pushing the rate to 15.5%, effective January 2026. These changes are part of a broader effort to modernize the tax framework and ensure that all sectors contribute fairly to the national budget.