WATCH: Prof Ncube proposes trade-off: Cut IMTT, raise VAT

FINANCE, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube

Under Statutory Instrument (SI) 237 of 2025, gazetted last week, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube introduced new tax reliefs and extended existing duty suspensions on critical imports, including public service buses, mining chemicals and vehicle assembly kits.

Nqobile Bhebhe, Zimpapers Business Hub

Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, has proposed a balancing act in the country’s fiscal framework suggesting a half percent reduction in the Intermediated Money Transfer Tax (IMTT), offset by an equivalent increase in Value Added Tax (VAT).

Addressing delegates at the ongoing 2026 Pre-Budget Seminar in Bulawayo, Professor Ncube responded to calls for a reduction of the IMTT, noting that the levy has been a key source of funding for critical national programmes.

He noted that the IMTT had played a pivotal role in financing major infrastructure projects as well as the procurement of COVID-19 vaccines during the pandemic.

“We can reduce IMTT by half a percent, but provided to allow us to increase VAT by half a percent,” said Professor Ncube.

“You don’t have to respond, you can tell me afterwards how you feel.
But we need that revenue, or else we cannot function.”

Delegates said the proposal might spark robust debate among legislators, economic analysts and business stakeholders as Government seeks to strike a delicate balance between stimulating economic activity and maintaining fiscal stability.