Tinotenda Hove– As Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube prepares to present the 2026 Mid-Term Budget Review on Thursday, pressure is mounting on Treasury to address persistent economic concerns that businesses say continue to weigh heavily on investment, production and long-term growth.

The mid-year fiscal statement comes at a time when the Government is expected to defend its economic performance while responding to growing calls for policy changes that industry leaders believe are necessary to improve confidence and stimulate productive sectors.

Business executives, economists and construction industry stakeholders are expected to scrutinise the review for signs of meaningful policy adjustments, particularly on taxation, infrastructure financing, inflation management and investment incentives. Critics argue that previous policy pronouncements have often failed to translate into tangible improvements for businesses operating under difficult economic conditions.

The Zimbabwe National Chamber of Commerce (ZNCC) says it has already submitted proposals aimed at overhauling the country’s tax framework, insisting that current policies require significant reforms to improve fairness, efficiency and economic competitiveness.

ZNCC president Josephine Takundwa said the chamber’s recommendations seek to balance Government revenue collection with the need to protect productive industries.

“Regarding the tobacco excise duty framework and its implications for investment, revenue mobilisation, industrial sustainability, and regulatory effectiveness, the chamber’s position is guided by three principles: maximisation of sustainable fiscal revenues, preservation of productive industries and formal employment, and the reduction of illicit trade and regulatory leakages,” she said.

Takundwa warned that any tax changes affecting the tobacco sector should be carefully considered because of the industry’s importance to Zimbabwe’s economy.

“The tobacco industry remains an important contributor to Zimbabwe’s economy through agriculture, manufacturing, exports, employment creation, and tax revenues. Any changes to the excise framework should, therefore, be evaluated not only on their immediate revenue implications but also on their impact on compliance, investment, and the long-term viability of the value chain,” she said.

While acknowledging Government efforts to stabilise the monetary environment through the introduction of the Zimbabwe Gold (ZiG) currency, the ZNCC questioned whether the current tax system is fit for purpose.

“However, from a tax policy design perspective, the current mixed excise system remains more vulnerable to currency movements due to its ad valorem component,” Takundwa said.

She argued that replacing the current model with a specific excise duty system would provide greater certainty for both Government and businesses.

“Transitioning to a specific excise duty regime would materially improve stability and predictability. It would also reduce administrative complexity for the Zimbabwe Revenue Authority (ZIMRA), as ad valorem taxation requires constant monitoring and verification of ex-factory prices.”

Takundwa further warned that the present system creates opportunities for abuse and weakens Government revenue collection.

“Many jurisdictions increasingly rely on specific excise structures because they are easier to administer and less vulnerable to manipulation. The existing dual excise structure exposes the tax system to manipulation. The ad valorem component is inherently vulnerable to practices such as under-declaration of ex-factory prices by scrupulous manufacturers and importers, which directly erodes excise collections.”

She added that a specific excise duty would make the tax regime more transparent and less susceptible to manipulation.

“In principle, products within the same category should converge around comparable ex-factory prices. By contrast, a specific excise duty delivers more stable, transparent, and predictable revenues, shielding collections from price manipulation and inflationary pressures.”

The budget review is expected to reveal whether Treasury is prepared to respond to concerns raised by the business community or continue with existing policies that many stakeholders believe require urgent reform. With businesses seeking greater policy certainty and practical interventions, Thursday’s statement is likely to be judged not only on its projections but on whether it offers credible solutions to Zimbabwe’s continuing economic challenges.