By Ziyah News Reporter
The Government of Zimbabwe is Developing a strategy to transition the majority of tax payments and fees to the Zimbabwe Gold (ZiG) currency, aiming to enhance its demand and stabilize its value.
This initiative is part of the preparations for the upcoming 2025 National Budget, which is set to be announced next month.
Finance, Economic Development, and Investment Promotion Minister Prof. Mthuli Ncube confirmed that the government intends to require taxpayers to fulfill a “significant portion” of their financial obligations using the local currency. He indicated that customs duties are already being paid in ZiG, with plans to extend this policy to include additional taxes.
“Going forward, in line with our de-dollarisation roadmap, we will also require other taxes and government service payments to be made exclusively in the local currency,” Prof. Ncube stated during a discussion in Harare.
Launched in April, ZiG was introduced as a stable currency designed to boost the economy. However, it has faced significant fluctuations in value. On September 27, for instance, the currency plummeted from US$1:ZWG13.99 to US$1:ZWG24.39 in just one day, and by October 16, it had further declined to ZiG26.6718 against the dollar.
To furtherstrengthen the local currency, Ncube has proposed new legislation that would allow businesses to pay their corporate income tax in both local and foreign currencies on a 50:50 basis. Companies that earn more than 50% of their revenue in foreign currency would be required to comply with this split payment system.
While some critics are calling for mandatory ZiG payments for government services, such as passport issuance, the government has maintained that these fees will still be collected in US dollars under the current policy.
Concerns have been raised about the volatility of ZiG, particularly regarding its impact on the rising cost of living and the national budget. Economists warn that an unstable currency could further strain Zimbabwe’s economy, which is already grappling with a public debt estimated at US$21 billion.