Zimbabwe’s 2026 National Budget has introduced a new Digital Services Withholding Tax that will significantly affect foreign digital platforms, including Starlink, Bolt and inDrive.
The tax replaces the current VAT on imported digital services and applies to a wide range of payments made to international platforms.
These include satellite internet subscriptions, equipment purchases, digital advertising, online content services and fees paid to ride hailing apps.
Finance Minister Mthuli Ncube announced the new measure in the 2026 Budget Speech. The tax will be applied at the moment a payment is made by a Zimbabwean user or local intermediary to an offshore digital operator.
It is intended to update the country’s tax system to reflect the growth of the digital economy.
Local banks, mobile money platforms and other financial institutions will be responsible for deducting and forwarding the tax to government.
This approach is meant to close long standing gaps that previously allowed global digital companies to earn revenue from Zimbabwean users without contributing to the national tax base.
Ride hailing services are expected to feel the impact once the tax takes effect. Platforms such as Bolt and inDrive may face increased costs and could respond by raising fares or adjusting commission structures for drivers.
Starlink, which has grown rapidly among Zimbabwean households, businesses and rural communities, will also be affected. Subscription payments, service renewals and equipment purchases will all fall under the new tax.
This may result in higher prices unless the company decides to absorb the additional cost.
Government argues that the new tax is intended to promote fairness by ensuring that international technology companies contribute to public revenue in the markets where they operate.
Zimbabwe’s move aligns with global trends, with many countries adopting similar measures to capture value generated by fast growing digital service providers.
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