Harare – Delta Corporation Limited has appealed to the Parliamentary Portfolio Committee on Industry and Commerce, chaired by Clemence Chiduwa, calling for urgent legislative and administrative reforms to Zimbabwe’s tax framework, warning that current policies are stifling investment, distorting competition, and limiting the ability of businesses to reinvest.

Presenting its 2027 Pre-Budget Submission before the Industry Committee on October 6, the beverages giant outlined a comprehensive list of grievances and recommendations, ranging from multi-currency VAT compliance to the recalibration of the sugar surtax and the reduction of withholding taxes.

Delta’s Finance Director, Dr Alex Makamure prefaced the company’s submissions with a display of its substantial economic footprint.

The company reported that in Zimbabwe, it produced volumes of 10.9 million hectolitres in 2025, up from 7.8 million in 2022. Group tax payments surged to US$305.6 million in 2025, up from US$251.2 million in 2024, while the company commits approximately US$50 million annually to capital investment, including its Belmont brewhouse and packaging lines.

The submission argued that exchange-rate stability has been pivotal in supporting raw-material supply and pricing discipline, contributing to a roughly 40% volume increase between 2022 and 2025. “Predictable tax rules support investment planning,” Delta stated, noting that ZIMRA reported H1 2026 nominal US-dollar collections up 46.73% year on year.

Delta is pushing for a “threshold-based recalibration” of the sugar surtax, arguing that Zimbabwe’s current model – which taxes from the first gram – places an unfair burden on manufacturers compared to regional competitors.

According to the submission, while Zimbabwe’s marginal rate appears lower, the effective burden exceeds South Africa’s at common sugar levels because it starts taxing at zero. The company pays US$1,000 in tax per tonne of sugar used, exceeding the US$800 per tonne price of the sugar itself.

Delta proposes a 4g per 100ml levy-free threshold for ready-to-drink beverages, aligning with South Africa and Botswana.

It also called for equal levy treatment for imports and local beverages, calling for the removal of tariff code 2106.90.90 from the sugar-surtax schedule to prevent misclassification and grey-market imports.

The presentation noted that 81% of collections since 2025 are already committed to cancer equipment, and recommended modifying the rate as collections exceed the earmarked health spend.

Highlighting the operational chaos caused by currency volatility, Delta called for a prospective dual-currency VAT framework in the 2027 Finance Bill. The company seeks clear statutory rules for currency attribution, returns, and payments, distinct from the income tax rules under Section 37AA.

Delta also flagged significant concerns with ZIMRA’s Tax and Revenue Management System (TaRMS), stating that mandatory fields and workflows “may impose outcomes the Acts do not support,” including the rejection of credit notes and the requirement for separate currency-specific VAT returns.

The submission calls for cross-currency set-off and reconciliation to prevent duplicate recovery of tax liabilities, and a joint review of TaRMS against applicable legislation.

Under the banner of “Supporting formalisation with simpler compliance,” Delta took aim at Section 81A, which places customer-compliance checks on manufacturers and wholesalers.

The company requested the repeal of the 5% withholding tax under this section, citing inconsistent relief for VAT-exempt basics and the added cost of the Intermediated Money Transfer Tax (IMTT) on electronic payments.

The submission noted that Operation Chenesa – a government initiative targeting informal traders – disrupted beverage distribution. Delta urged the committee to support affordable vending sites, simple registration, and a phased transition to support orderly trade and livelihoods, rather than encouraging cash trading and informal sourcing.

In a stark illustration of the tax burden, Delta presented charts showing the share of taxes in retail prices. For a 750ml bottle of Carling Black Label, 35.7% of the retail price goes to taxes, leaving only 16.3% net to the business. For a 300ml Coke, 26.5% is absorbed by taxes, with only 5.0% net to the business. Chibuku Super sees 19.7% go to taxes and 9.2% net to the business.

Dr Makamure stated that: “Taxes are a big cost to all businesses,” “limits ability to reinvest in the business,” and “Reduce @ 40% + VAT.”

Delta is urging the committee to support a joint technical review before the 2027 Budget, with a published response to its recommendations.