Starlink will take a direct hit from Zimbabwe’s new Digital Services Withholding Tax, a measure in the 2026 National Budget that targets payments made to foreign digital platforms.
The tax replaces VAT on imported digital services and will affect everything from satellite internet subscriptions and equipment fees to payments made to ride-hailing apps like Bolt and inDrive.
New tax on imported digital services
Zimbabwe’s Finance Minister Prof. Mthuli Ncube announced the measure during his 2026 Budget Speech. The new tax replaces the usual VAT charged on imported digital services.
It applies to payments made to foreign digital platforms for services including e-hailing fees, online content subscriptions, digital advertising and satellite-based internet.
This means any payment that Zimbabwean users, or local intermediaries, make to offshore digital operators will now attract a mandatory withholding tax at the moment the payment is processed.
Banks and mobile money operators to deduct the tax
The Budget places the responsibility for deducting and remitting this tax on “paying agents”.
These include local banks, mobile money platforms and financial institutions that facilitate payments for users.
By doing so, the government closes long-standing gaps that allowed international digital companies to earn locally without paying taxes in Zimbabwe.
Ride-hailing services and Starlink set to feel the impact
The change will likely make services like Bolt and inDrive more expensive.
Since these platforms rely on service fees charged to riders and drivers, the new tax could push them to either absorb the additional cost or pass it on through higher fares or adjusted commissions.
Starlink continues to grow its African footprint and has become popular among households, businesses and rural communities in Zimbabwe. However, it will not be spared from the tax.
Payments for subscription packages, equipment and service renewals will fall under the tax. This could lead to slight price increases unless the company decides to absorb the cost.
Government says the tax is meant to create fairness in the digital economy.
The government argues that global tech companies have been earning revenue in Zimbabwe.
However, it says they have not been making a matching contribution to local tax coffers.
The policy brings Zimbabwe in line with global trends. Many countries are now moving to tax the value generated by fast-growing digital service providers.
