Zimbabwe's 2025 National Budget, titled "Building Resilience for Sustained Economic Transformation," has received mixed reactions from citizens.
The budget includes tax reforms aimed at addressing economic challenges, such as the introduction of a new "Fast Foods Tax" on popular items like shawarmas, burgers, and pizza. This tax is intended to combat obesity and related diseases but has been met with dissatisfaction due to the already high tax burden.
The budget also seeks to formalize the informal economy by mandating registration for Corporate and Personal Income Tax in various sectors, including car dealers and clothing boutiques.
The reduction in import duties for electric vehicles (EVs) from 40% to 25% is another notable change, aimed at promoting eco-friendly vehicles and reducing carbon emissions. However, EVs still face a disadvantage compared to electric tractors, which enjoy a 0% customs duty.
The budget also proposes a duty rebate on equipment used for establishing solar-powered EV charging stations, aiming to enhance infrastructure and support EV adoption, particularly in off-grid areas.
These initiatives reflect the government's commitment to sustainable practices and economic transformation.