Story by Owen Mandovha
PRIVATE consultants have made an in-depth analysis of the 2026 national budget to Parliamentarians ahead of the budget debate next week, with the issue of additional taxes dominating discussions.
The 2026 national budget announced by Professor Mthuli Ncube on Thursday last week came under huge scrutiny at the New Parliament Building in Mt Hampden during a post-budget seminar where parliamentarians from across the political spectrum converged to discuss the efficacy of the budget propositions.
Parliament invited consultants, who dissected the budget in terms of how it meets the aspirations of Zimbabweans.
What came out tops are new revenue enhancement measures such as VAT hike and the New Cash Withdrawal levy which have the potential to impact businesses and the economic well-being of citizens.
“These adjustments and the New Cash Withdrawal levy are part of the revenue enhancement measures introduced by Treasury to broaden the tax base, but they have to be balanced in terms of how they are going to impact business profitability and some key vulnerable groups of society,” Zimbabwe Women Resource Centre Network’s Executive Director, Ms Thokozile Ruzvidzo said.
“There are adjustments to how the IMTT will be calculated as it comes as a tax-deductible expense for tax purposes, which is a bit fair, but also the changes to how miners carry over their losses for tax calculations have also been limited to just 30 percent, which makes huge sense,” Tax Consultant, Mr Steve Matoshaya noted.
The budget will be underpinned by the 10-pillar five-year NDS2 and the allocations made to several economic sectors also came under huge scrutiny in terms of how this will enhance economic growth and development.
“The budget was very balanced in terms of bringing the much-needed growth that resonates with the NDS 2,” Senator Robson Mavhenyengwa noted.
“Key sectors such as health and education were well funded, but the gender balancing initiatives speak well to the well-intentioned budget that drives growth,” Legislator, Honourable Nyasha Chikwinya added.
In her opening address, Senate President of Madam Mabel Chinomona rallied Parliamentarians to ask whether or not the budget meets the aspirations of the people.
“As you are about the debate on this budget, consider the people as priorities in terms of whether it aligns with growing the national cake and providing key services such as health and education to drive the growth and development agenda.”
“As the Budget and Finance Committee, we can now proceed to debate the budget because it has been made clear to the people of Zimbabwe and Parliamentarians here present and some of the issues discussed resonate with what we discussed at the pre-budget consultations,” Chairperson of the Budget and Finance Committee, Honourable Lincoln Dhliwayo stated.
Zimbabwe’s economy is set to grow at an average of 6 percent this year, above the 4,4 percent Sub-Saharan average. However, the economy might experience a budget deficit of US$140 million, hence the revenue proposals to finance the deficit and meet expenditure for the year 2026.
