The Zimbabwe Revenue Authority (ZIMRA) has pledged to clear its long-standing backlog of value-added tax (VAT) refunds, a move likely to be welcomed by the mining sector, which has consistently raised alarm over the burden of over-taxation and delayed reimbursements, Mining Zimbabwe can report.
By Rudairo Mapuranga
Speaking at the 2025 Chamber of Mines Annual Mining Conference and Exhibition held in Victoria Falls last week, ZIMRA’s Commissioner of Domestic Taxes, Misheck Gova, acknowledged the fiscal frustration of many mining houses and confirmed that significant progress had been made in clearing outstanding refunds.
“We had a backlog of refunds, but we have put our foot on the pedal and we are almost there now,” Gova said. “We understand that refunds are critical for operational cash flows, and the authority is committed to timely reimbursements moving forward.”
ZIMRA’s statement comes at a time when players in the mining sector — especially small- to medium-scale producers — have lamented what they describe as a harsh and often confusing tax framework, which includes withholding taxes, royalties, income tax, customs duties, and capital gains tax.
Industry players have repeatedly pointed out the difficulty of operating viably under a system where tax burdens are compounded by delays in receiving refunds and forex surrender requirements that are mismatched with market realities.
In previous statements, miners have cited VAT refunds as a key barrier to growth. Many claim they are forced to delay exploration or procurement of inputs due to locked-up funds, contributing to reduced production and layoffs in an already strained economic environment.
The Chamber of Mines and Zimbabwe Miners Federation (ZMF) have expressed concern that while formal miners are expected to comply with a complex tax regime, the informal and unregulated sector continues to grow, often escaping formal tax scrutiny. This discrepancy, miners argue, further distorts the playing field.
Gova admitted that revenue contributions from the mining sector have been on the decline despite the sector enjoying several fiscal incentives and concessions.
“From a comparative analysis, the contribution of the sector to total tax revenues in USD terms has gone down to about 18%. In ZIG, it’s even lower at around 8%,” he said.
He added that despite concessions — such as the deductibility of royalties, capital expenditure allowances, zero-rated VAT on some goods, and special mining lease benefits — tax compliance pain points remain. These include informalisation, commodity price manipulation, transfer pricing, illicit financial flows, and climate-related risks.
In an effort to address these, ZIMRA has adopted a more sector-focused approach by categorising miners according to minerals, such as lithium and gold, and dedicating specialised audit teams. The authority has also recruited industry-specific experts from the Ministry of Mines to improve auditing and taxpayer engagement.
A notable legislative shift has also been the recognition of royalties as a tax-deductible expense, something miners had long pushed for.
“We used to deny those claims, but due to legislative amendments, we now allow royalties to be deducted, which obviously impacts tax revenue,” Gova explained.
Gova further highlighted ZIMRA’s adoption of digital solutions like the Tax and Revenue Management System (TAMS), which now automates processes such as tax clearance issuance and improves overall taxpayer compliance efficiency. High-speed X-ray scanners have also been deployed at border posts to enhance customs clearance and detect contraband.
Despite these improvements, miners maintain that until refund delays and forex constraints are resolved, the sector’s contribution to Vision 2030 will remain limited.
As Zimbabwe aims to grow its economy into an upper-middle-income status by 2030, the sustainability of its resource-based revenue model hinges not only on mineral production but also on the government’s ability to maintain fair, predictable, and responsive tax policies. Miners hope ZIMRA’s new refund drive is more than just talk — and that action will follow swiftly.
