- The 2026 National Budget introduces tax adjustments, including reducing the IMTT on ZiG transactions from 2% to 1.5% and making it tax-deductible, while VAT increases from 15% to 15.5%.
- A new Digital Services Withholding Tax will replace VAT on imported digital services, targeting payments to offshore digital platforms.
- The economy is projected to grow by 5% in 2026, with a budget deficit of ZiG 3.8 billion (US$140.1 million), and public debt at 44.7% of GDP.
- Diaspora remittances are expected to exceed US$2.8 billion in 2026, and the current account balance is projected to improve.
- The budget faces intense spending pressures, with proposed expenditures far exceeding available resources, and now awaits parliamentary approval.
Source: allafrica.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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