ZIMBABWE Congress of Trade Unions (ZCTU) secretary general Tirivanhu Marimo says the 2026 National Budget has “once again” failed to speak to the harsh realities facing workers, pensioners and the unemployed.
Heading into the 2026 National Budget released last Thursday, consumers expected the government would offer relief to workers amid declining disposable incomes owing to macroeconomic challenges such as increased taxation.
However, the budget offered no increases in the income tax-free threshold.
Instead, the government increased VAT to 15,5%, made rental tax mandatory, introduced a 15% Digital Services Withholding Tax on offshore platforms, and raised betting tax to 20% from 3% — measures Marimo said further squeezed already struggling workers.
“...our preliminary review shows that the budget does not rise to the scale of the socio-economic hardships confronting ordinary citizens,” Marimo told NewsDay Business.
“Despite Zimbabwe being richly endowed with minerals and natural wealth, the budget does not demonstrate how this wealth will be equitably harnessed to uplift workers, pensioners, and communities. Although the minister of Finance announced a reduction of the IMTT [Intermediated Money Transfer Tax] from 2% to 1,5%, this applies only to ZiG transactions and is immediately offset by the increase in VAT from 15% to 15,5%.”
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He said the shift was regressive and placed a heavier burden on the working poor.
“For labour, this signals more of the same, a continuation of taxation policies that extract from the bottom while offering minimal pro-poor or pro-employment support. In a tightening labour market, the absence of bold, pro-employment budgeting is a major missed opportunity,” Marimo said.
He also criticised the budget for failing to address pensioners’ declining livelihoods, saying they continued to receive “meagre, erosion-prone payouts” with no structural reforms to restore dignity.
“At the same time, the budget remains silent on unemployment benefits, despite unemployment and informality dominating the labour market.”
He said it was unacceptable that in a mineral-rich country generating billions in revenue, workers and pensioners remained unprotected.
“Early indications also point to declining allocations in critical sectors such as health, undermining service delivery for the majority,” Marimo said.
He further warned that the proposed cash withdrawal levy could discourage banking and fuel “mattress banking”, worsening distrust in the financial sector.
The monthly cash withdrawal threshold was kept at 0% on transactions for individuals withdrawing US$1 to US$500 and corporates US$1 to US$5 000.
However, for individuals withdrawing US$501 to US$1 000 and corporates withdrawing US$5 001 to US$10 000, this will incur a 2% fee, and 3% for individuals withdrawing above US$1 001 and corporates above US$10 001.
“Taken together, these measures reflect a budget that fails to redistribute national wealth fairly or address long-standing structural inequities that continue to impoverish workers and pensioners,” Marimo said.