Zimbabwe’s New Digital Tax to Hit Bolt, inDrive and Starlink in 2026
The new tax forms part of a broader revenue mobilisation strategy under the 2026 National Budget, which also includes adjustments to VAT, royalties and customs duties.
Zimbabwe’s 2026 National Budget introduces a new Digital Services Withholding Tax that will directly impact global digital platforms operating in the country, including ride-hailing services such as Bolt and inDrive, as well as satellite internet providers like Starlink.
The tax, announced by Finance Minister Prof. Mthuli Ncube in the 2026 Budget Speech, replaces the traditional VAT on imported digital services. It will apply to payments made to offshore digital platforms for services such as e-hailing fees, online content subscriptions, digital advertising and satellite-based internet access. This means any fees paid by Zimbabwean users or local intermediaries to foreign digital operators will now attract a mandatory withholding tax collected at the point of payment.
According to the Budget, the responsibility for withholding and remitting the tax will fall on “paying agents”, which include local banks, mobile money platforms and other financial institutions processing payments on behalf of users. This effectively closes long-standing loopholes that allowed foreign digital companies to earn revenue from Zimbabwe without paying domestic taxes.
The move is expected to increase the cost of using services like Bolt and inDrive, which rely heavily on service fees deducted from riders and drivers. With the new tax applied at payment level, these platforms may either absorb the additional cost or pass it on to users through higher fares or revised commission structures.
Starlink, which recently expanded its footprint across Africa and is increasingly used by businesses, households and rural communities in Zimbabwe, will also be affected. Payments for data subscriptions, equipment fees and service renewals will fall under the new tax. This may result in slightly higher subscription prices unless the company absorbs the tax burden.
Government argues that the measure is necessary to ensure fairness in the digital economy, where global companies have been earning in the local market without contributing proportionately to tax revenues. The Digital Services Withholding Tax aligns Zimbabwe with emerging international taxation trends aimed at capturing value from the rapidly expanding digital services sector.
The new tax forms part of a broader revenue mobilisation strategy under the 2026 National Budget, which also includes adjustments to VAT, royalties and customs duties. It is expected to generate significant new revenue as digital platforms continue to dominate service delivery and consumer spending across the country.
