Economists Warn of Price Hikes as New Taxes Take Effect

16 January 2026

By Colleta Bell

Economists are warning that consumers should brace for higher prices following the introduction of eight new taxes by government at the start of this year.

Speaking to SkyzMetro FM, economic analyst Reginald Shoko said, the new measures, which include an increase in Value Added Tax, are expected to push up the cost of goods and services across several key sectors of the economy.

Shoko explained that the taxes are part of government efforts to raise revenue for the 2026 national budget, but noted that businesses are likely to pass on the additional costs to consumers.

The Ministry of Finance has defended the tax reforms, saying they are necessary to strengthen revenue collection and support economic stability and development.

However, some economists argue that introducing new taxes at a time when many households are already struggling could worsen the cost-of-living pressures faced by ordinary Zimbabweans.

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