High and Numerous Taxes Impede Social Security Schemes In Zimbabwe

By Shingirai Vambe

Zimbabwe’s economy is struggling under the weight of high and numerous taxes, which are impeding the implementation of much-needed social security schemes. The government’s over-reliance on taxation has resulted in a complex web of taxes that are stifling economic growth and limiting the government’s ability to provide essential social services.

The country has over 20 different taxes, including income tax, value-added tax (VAT), and various levies. These taxes are applied to a wide range of goods and services, making it difficult for businesses and individuals to navigate the system.

“The tax regime in Zimbabwe is punitive and unforgiving,” said a local business owner. “It’s like they’re trying to suck every last penny out of us. How are we supposed to invest in our businesses and create jobs when we’re being taxed to death?”

The high tax burden is also limiting the Insurance and Pensions companies’ ability to implement social security schemes. The government has promised to introduce – a national health insurance scheme and a pension scheme for informal workers, but the high tax revenue targets are making it difficult to allocate funds for these initiatives.

Speaking to the Media the National Social Security (NSSA) Director Social Security, Shepherd Muperi, said there are likely to roll out a pilot project on informal workers in 2025 after Zimstats has finished working on the demographics. He also said their wish was to introduce a maternity grant, to ease the burden to the employer when mothers are on leave and giving birth, “It’s a national duty he added.

“We want to improve the social services to our citizens, adapting to the new world order and meet the international standards but under the circumstances, it’s difficult.”

The situation is exacerbated by the fact that many Zimbabweans are already struggling to make ends meet. The country has one of the highest unemployment rates in the region, and many people are forced to work in the informal sector, where they are not protected by labor laws or social security schemes.

“The government needs to rethink its tax policy and prioritize social welfare,” said Orbet Masaraure, Amalgamated Rural Teachers Union of Zimbabwe (ARTUZ). “We need a more progressive tax system that protects the poor and vulnerable, rather than punishing them with high taxes.”

Former Chegutu legislator, Dexter Nduna raised a number of motions, regarding Pensions and Insurance which majority of working citizens feels it’s a thorn in the flesh of a low salary earner. he said, “the government needs to rethink its tax policy and prioritize social welfare to ensure that citizens have access to the support they need.”

“Despite equal opportunities and responsibilities in the market and economic forces, male figures continue to dominate the contribution circle, according to NSSA. However, demographic figures show that women are lagging behind in contributing to social security. This highlights the need for women to take a proactive approach, leapfrog, and protect their future against life’s unforeseen circumstances.”