
HARARE – Opposition legislator for Marondera Central, Mr Caston Matewu, has lost his legal battle against the Government’s wealth tax, introduced in the 2024 National Budget to address income inequality.
The wealth tax, which came into effect in December 2023, imposes a one percent levy on residential properties valued above US$250,000, excluding primary residences. It specifically targets additional high-value properties often used for rental purposes.
Mr Matewu had argued that the tax was unconstitutional, unfair, and discriminatory. His application sought to invalidate Section 36 O of the Income Tax Act and Section 22 O of the Finance Act, claiming that the levy violated several constitutional rights, including equal protection under Section 56(1), the right to shelter under Sections 81(1)(f), 47, and 51, and the requirement for equitable tax distribution under Section 298(1)(b)(i).
He further asserted that the tax disproportionately impacted middle-class property owners, sparing those with wealth tied to other assets such as commercial buildings, industrial properties, or shares. According to Mr Matewu, the policy unfairly penalised individuals with multiple residential properties, including those who acquired them through inheritance or family circumstances, such as widows, pensioners, and the disabled.
However, High Court judge Justice Gladys Mhuri dismissed the application, criticising the broad and unfocused nature of Mr Matewu’s arguments.
“The applicant approached this court with a machine gun, hoping to hit a valid constitutional target. Unfortunately, none of the provisions support his cause,” Justice Mhuri stated.
The judge highlighted that the wealth tax specifically exempts primary residences and focuses solely on additional residential properties valued above US$250,000. Furthermore, commercial and industrial properties remain outside the scope of this tax as they are subject to other tax regimes.
The ruling marks a significant victory for the Government’s efforts to address wealth disparities, while reaffirming the legality of the tax structure.