By Jonathan Mbiriyamveka
HARARE – Delta Corporation paid more than US306 million in taxes to the Zimbabwean fiscus during the 2026 financial year.
The tax contribution includes excise duty, sugar surtax, corporate tax, value-added tax (VAT), and pay-as-you-earn (PAYE) – all of which grew in line with the business. Delta Corporation emphasised that as the business grows, its fiscal contribution also grows.
“Delta’s US$306 million tax contribution this year illustrates the value of a thriving formal beverages sector,” the company said.
“In our view, a healthy Delta supports a healthy fiscus, and that alignment remains important for sustainable growth.”
Despite this substantial contribution, ZIMRA’s cumulative assessments against Delta Beverages and African Distillers (Afdis) have risen to about up from US97million, up from US73 million last year.
The additional US$24 million relates mainly to the 2021 year of assessment, which remains under review.
Delta Corporation strongly disputes the basis of the 2021 assessment, arguing that it uses a turnover-ratio method that was not expressly provided for in the law at the time on best available interpretations.
The company also believes that Statutory Instrument 60 of 2024 should be applied, which could materially change the outcome once amounts already paid are recognised.
“In 2021 and prior years, we paid our taxes in the legal tender of the day, at the rates required by law,” Delta Corporation stated.
“Our view is that the principal obligations were settled, and these assessments restate the liability side without similarly recognising the value already paid.”
The company has already paid US$18.7 million under the “pay now, argue later” principle and is contesting the assessments through both the courts and amicable engagement with ZIMRA.
The dispute, however, is far from an isolated incident. Several major listed entities and mining companies have flagged similar retrospective assessments, indicating a systemic challenge rooted in the country’s complex currency transitions between 2019 and 2021.
For the formal sector, these legacy exposures represent a significant contingent liability that complicates financial planning and continues to strain the relationship between the country’s largest taxpayers and the tax authority.
Delta’s effective income tax rate stood at 27.6%, above the statutory rate. The company explained that rapid business growth expands net operating margins through economies of scale, while capital allowances on assets acquired and depreciated in Zimbabwe dollars are now worth only a fraction of their original US dollar equivalent – reducing the value of otherwise legitimate deductions.
The company’s appeal to fiscal authorities is for alignment of legislation to remove ambiguities, recognition of taxes paid in legal tender, and a fair pathway to resolve historical issues.
“Across the business, we absorbed part of the VAT increase introduced in January 2026, as well as higher fuel and PET resin costs linked to the Middle East conflict due to limited opportunities for further price increases,” Delta Corporation added.
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