Government suspends tax on power generating projects

The government has exempted power generating projects from paying corporate income tax during the first five years of operation to increase investment and power supplies.

The policy, which came into effect on the 1st of January 2018, will result in the power generating projects being levied a 15 percent corporate income tax only after the expiry of the first five years.

Tax Matrix Managing Director, Mr Marvellous Tapera said the tax relief will increase investments in the energy sector.

“It is a critical element, whose sustainability depends on the commitment to boost power generation,” he said.

Engineering, Iron and Steel Association of Zimbabwe President, Mr Austin Tigere said the capital intensive power generating projects should focus on expanding operations.

 “With such a policy now in place, what is now required is the ability to utilise the opportunity to boost the generating capacity,” said Mr Tigere.

The power generating value chain is also expected to increase operations and reduce the nation’s import bill on energy sources.