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Delta Corporation Limited, Zimbabwe’s largest beverage manufacturer, has expressed frustration over the Zimbabwe Revenue Authority’s (Zimra) practice of creating legislative positions through public notices without backing from enabling laws, fueling business uncertainty. The company says this growing trend is undermining its ability to plan, invest, and operate efficiently.
In its annual report for the period ending March 31, 2025, Delta highlighted the difficulty in navigating taxation frameworks and economic policies in a volatile policy landscape. The company disclosed US$254.15 million in confirmed tax payments, including US$230.35 million in indirect taxes and US$23.8 million in income tax, representing annual increases of 19% for indirect taxes and a staggering 516.52% for income tax.
Delta criticized the unpredictable nature of local fiscal policies, saying sudden changes in taxes, such as the sugar surtax imposed on beverages, have triggered price hikes that have negatively impacted consumer demand and overall business performance. “The recent introduction of a sugar surtax on beverages at levels above regional benchmarks has led to price increases that have undermined business performance,” the company noted.
The company also decried the lack of clarity and consistency in legislative changes regarding the currency used for settling tax obligations, which has created significant challenges for businesses. “This lack of clarity, along with complex and inconsistent legislative changes regarding the currency used for the settlement of certain tax obligations, has created significant challenges for businesses,” Delta stated.
Delta’s revenue for the year was US$807.47 million, a 5% increase from the previous year, despite adjusting product prices due to tax burdens. The company is appealing additional tax assessments worth US$74.8 million, which, if enforced, would raise its total tax burden for the year to US$329 million .
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