Source: VAT Remains Zimbabwe’s Biggest Revenue Earner, Followed By PAYE ⋆ Pindula News
Value Added Tax (VAT) remains the single largest contributor to Zimbabwe’s total revenue, accounting for 28 per cent of collections, according to figures presented by Finance Minister Professor Mthuli Ncube in the 2026 Mid-term Budget Review on Thursday, 30 July.
Presenting the review in Parliament, Ncube provided a breakdown of the Tax Head Contribution to Total Revenue, which shows that consumption-based and income taxes continue to anchor government funding.
VAT at 28 per cent is followed by Personal Income Tax (PAYE), which contributed 17 per cent, and Corporate Income Tax (CIT) at 14 per cent. Together, the three heads account for 59 per cent of all revenue collected.
Income from employment and company profits combined – PAYE and CIT at 31 per cent – slightly outweighs VAT, underlining the continued importance of formal sector earnings to the fiscus.
After VAT, Excise Duty contributed 9 per cent, Customs Duty 7 per cent, and the Intermediated Money Transfer Tax (IMTT) 6 percent. The Strategic Reserve Levy contributed 4 per cent, while Other Indirect Taxes accounted for 1 per cent.
On the direct tax side, Mineral Royalties contributed 4 per cent and Other Direct Taxes 4 per cent, reflecting income from the mining sector and other direct tax lines. Withholding Taxes contributed 2 per cent.
Non-Tax Revenue – which includes fees, fines and other government charges outside the Zimbabwe Revenue Authority tax heads – contributed 5 per cent of total revenue.
The Mid-term Review provides the half-year performance of the 2026 National Budget and sets the tone for revenue and expenditure adjustments for the remainder of the year.
COMMENTS