Broke Mnangagwa Regime Targets Churches for Tax Revenue – Eduzim News

By A Correspondent

In a surprising move, President Emmerson Mnangagwa’s administration, grappling with financial strain, is now targeting churches to bolster its dwindling revenues.

This decision has been viewed as a desperate attempt by the government to shore up its ailing coffers.

On Thursday, the Zimbabwe Revenue Authority (ZIMRA) issued a public notice addressing churches across the country, outlining tax guidelines and inviting them to an upcoming stakeholder engagement. The statement read:

“PUBLIC NOTICE:
NOTICE TO ALL CHURCHES

The Zimbabwe Revenue Authority (ZIMRA) wishes to inform all churches about an upcoming Stakeholder Engagement. This forum aims to address tax compliance across all applicable tax categories, as part of ZIMRA’s commitment to transparency and compliance support. The date and venue for the engagement will be communicated in due course.”

The notice also provided important tax guidelines for churches, detailing both exempt and taxable income. According to ZIMRA:

“Exempt Income
The following types of income are exempt from income tax: • Donations, Tithes, Offerings, and Contributions: Income received or accrued from donations, tithes, offerings, or contributions made by members or benefactors of the church or its institutions.

• Non-Trading Receipts: Any income that does not arise from trade or investment activities conducted by or on behalf of the church or its institutions.”

However, the notice clarified that income generated from trading activities would be subject to taxation. “Examples include (but are not limited to):

• Proceeds from the sale of church literature, books, or music.
• Revenue from church-branded merchandise (e.g., apparel, anointing oils, artifacts, etc.).
• Income from the sale of meals, clothing, or other similar items.
  Such sales may also attract Value Added Tax (VAT), depending on the sales thresholds.”

This move has raised concerns about the potential financial strain it could place on churches, already grappling with economic challenges.

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