14 December 2021

The Zimbabwean government announced the introduction of a new US$50 levy on imported mobile phones, according to the 2022 national budget presented in November.

Finance minister Mthuli Ncube told MPs that although “imported cellular telephone handsets attract modest customs duty of 25%, the funds realised, however, point to evasion of the customs duty due to the nature of the items which can easily be concealed” at the country’s ports of entry.

“I propose to introduce a levy of US$50 which will be collected prior to registration of new cellular handsets by mobile network providers,” Ncube added. “However, where duty would have been paid, the Zimbabwe Revenue Authority will provide a refund of the levy, within 30 days of receipt of payment from the mobile network operator.”

Details of how the new tax will be collected have not yet been confirmed, but will be if the tax is approved by Parliament. As a reminder, the government has already introduced a 5% excise duty on communication credit recharge cards, 25% customs duty on imported mobile phones, and 2% tax on electronic financial transactions.

Ncube says the Zimbabwean economy is expected to grow by 5.5% in 2022, supported by higher output in the mining, manufacturing, agriculture, construction, and accommodation and food services (tourism) sectors. This 2022 growth projection is subject to risks related to the future evolution of the pandemic and its impact on key sectors of the economy.

Consumers denounced this new tax, which they consider a threat to mobile penetration in the country.