Summary
- Zimbabwe’s Finance Minister presented the 2025 National Budget under the theme "Building Resilience for Sustained Economic Transformation"
- Proposed budget included various new taxes, including a Fast Foods Tax on items like shawarmas and burgers
- Mandatory registration for Corporate and Personal Income Tax announced for specific operators, including car dealers
- Import duties on electric motor vehicles in Zimbabwe will be reduced to 25% starting January 2025 to promote eco-friendly vehicles
- Rebate of Duty proposed on equipment for setting up Electrical Vehicle Solar Powered Charging Stations will incentivize the use of solar power for EV charging.
Article
Zimbabwe’s Finance Minister recently presented the 2025 National Budget with a focus on building resilience for sustained economic transformation. One of the main points of contention was the introduction of several new taxes, including a Fast Foods Tax on highly processed food items sold by fast food outlets. This move was aimed at promoting healthy eating but received backlash from citizens already struggling in a tough economic environment.
The budget also included measures to tap into the informal economy and small to medium enterprises sector by mandating registration for Corporate and Personal Income Tax for various operators such as fabric merchandisers, car dealers, and hardware store operators. The inclusion of car dealers, who import and sell a significant amount of used vehicles in Zimbabwe, was seen as a way to increase revenue in a country with a high annual import bill.
Despite the increase in taxes, there was some relief for the electric vehicle sector with a reduction in customs duty on electric motor vehicles from 40% to 25% effective from January 2025. This move was aimed at promoting the use of eco-friendly vehicles and reducing carbon emissions. Additionally, a rebate of duty was proposed for equipment used for setting up electric vehicle solar-powered charging stations, incentivizing the establishment of more charging infrastructure in the country.
The combination of electric vehicles and solar power was highlighted as a promising avenue for sustainable transportation. The decreasing costs of solar panels and battery storage contribute to making the business case for solar-powered charging stations more feasible, especially in off-grid areas. This aligns with the global trend towards clean energy and sustainable transportation, with examples such as the off-grid EV charging station in South Africa serving as a model for similar projects in Zimbabwe.
By supporting independent cleantech coverage, individuals have the opportunity to contribute to accelerating the clean technology revolution. With daily news updates and a focus on cleantech innovation, platforms like CleanTechnica play a crucial role in advancing sustainable solutions for various sectors, including transportation and energy. Initiatives such as the reduction of import duties on electric vehicles signify a step towards embracing cleaner and more environmentally friendly technologies in Zimbabwe, ultimately contributing to a greener and more sustainable future.
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