Kudzanai Gerede, Companies and Market Editor 
DELTA Corporation has urged Parliament to support a statutory dual-currency VAT framework, recalibrate the sugar surtax and simplify compliance requirements, arguing that predictable tax rules are critical to sustaining investment and formalising the economy.
The beverage manufacturer made the submissions to the Portfolio Committee on Industry and Commerce this week during a pre-Budget engagement, following a written submission lodged on September 30.
Delta said policy stability had helped drive strong growth over the past three years, with Zimbabwe volumes rising 40 percent to 10,9 million hectolitres in 2025 from 7,8 million in 2022.
The group attributed the growth largely to exchange-rate stability and improved access to foreign currency for raw materials.
Its tax contribution also increased, with group tax payments rising 22 percent to US$305,6 million in 2025 from US$251,2 million the previous year.
Finance director Alex Makamure said the performance demonstrated the benefits of a stable operating environment.
“When the currency settled and foreign currency became easier to get, we could plan, price sensibly and keep product on the shelf. Consumers came back, volumes grew and so did the taxes we pay,” Delta finance director Alex Makamure told law makers.
He said the group recently invested about US$50 million in capital projects, including the Belmont brewhouse and new packaging lines, stressing that, “continued investment depends on tax rules that businesses can reliably plan around.”
The company’s major concern is the administration of VAT across Zimbabwe’s dual-currency environment.
Delta proposed a framework under section 78 of the VAT Act providing for currency-specific VAT returns and payments, while remaining distinct from section 37AA provisions governing income tax.
It also wants clarity on how public notices issued between 2019 and 2023 interact with sections 15 and 28 of the VAT Act, particularly regarding the calculation and return of VAT.
The company has also raised concerns over import VAT and input-tax credits where transactions are concluded in one currency but settled in another.
On tax reassessments, Delta wants foreign-currency assessments arising from the retrospective application of section 37AA to recognise previous ZWL or ZiG payments at their appropriate equivalent value.
It is seeking legislated conversion dates and rates, safeguards against duplicate relief and cross-currency set-offs to prevent the same liability from being recovered twice.
Delta also wants a review of ZIMRA’s Tax Revenue Management System (TaRMS), arguing that some mandatory fields, workflows and ledger treatments may produce outcomes inconsistent with the tax laws.
The company cited requirements for separate currency-specific VAT returns and the rejection of credit notes as areas requiring review.
Delta also wants changes to the sugar surtax, arguing that Zimbabwe’s current structure puts local beverage manufacturers at a disadvantage to regional producers.
Other manufacturers, including Innscor Africa have previously called for a review of the sugar tax in order to make local firms competitive in a highly congested beverages market.
Zimbabwe charges US$0,001 per gram of sugar from the first gram, while South Africa’s Health Promotion Levy provides an exemption for the first 4g per 100ml.
“The current structure meant Zimbabwean beverages could face a heavier levy than South African products at similar sugar levels,” Makamure said, adding that the levy amounted to about US$1 000 for every tonne of sugar used, compared with roughly US$800 paid for the sugar itself.
In the 2026 financial year, the levy accounted for 6,4 percent of group revenue in its Sparkling Beverages business and 11,6 percent at Schweppes Holdings Africa.
Analysts have previously warned authorities that the levy has resulted increased use of artificial sweeteners by some local manufacturers and growth in grey-market beverage imports.
Delta also called for the repeal of the five percent withholding requirement under section 81A, which places customer-compliance obligations on manufacturers and wholesalers.
It proposed replacing the measure with ITF263 reporting, real-time ZIMRA verification and a good-faith safe harbour for suppliers.
The company also wants relief for businesses selling VAT-exempt basic goods to be applied consistently, while proposing that the Intermediated Money Transfer Tax be removed or credited against corporate income tax, subject to fiscal modelling.
Delta warned that excessive compliance costs could drive trade towards cash transactions and informal sourcing.
It also called for affordable designated vending sites, simplified registration and a phased formalisation process for informal traders following disruptions to beverage distribution during Operation Chenesa.
The company has requested a joint technical review of its proposals ahead of the 2027 Budget, followed by a government response.
