Itai Ndongwe
HARARE (FinX) – Zimbabwe Revenue Authority (Zimra) says it will chase a revenue target of US$7.1 billion in 2025, which is up 16.39% from US$6.1 billion in 2024. This will be anchored on an established digitilisation-driven strategy to extend the tax base.
The use of digital technology by the authority improves efficiency, decreases human interference, hence reducing potential for corruption, and eventually lowers collecting costs for the authorities. Furthermore, by streamlining processes, it will make compliance easier for taxpayers, hence increasing the possibility of prompt payment.
The collected revenue are used to support economic development, as 95% of the national budget is funded by domestically mobilised funds.
Zimra Commissioner General Regina Chinamasa told FinX on the sidelines of the taxpayer appreciation awards ceremony that, “As Zimra, we have stepped up our strategies for us to meet the expected US$7.125 billion for next year. What we have done is to come up with a strategy that leverages digitilisation while also ensuring that we expand the tax base.”
She added that Zimra has taken proactive steps to broaden the tax bracket, ensuring that as many individuals as possible are included. She noted that letters have been sent to various associations and organisations, encouraging those who are not in the tax bracket to take part.
Zimra’s goal is to begin next year with the majority of people on board, while introducing initiatives to bring all sector players into the fold. This inclusive strategy intends to encourage economic growth and development, which ultimately benefits the entire country.
“So, as we start the next year, we want to start with most of the people on board, but we are also going to put in place measures and programmes that ensure that each and every sector participant comes on board,” she added.
As the authority seeks to attract more taxpayers, it has over 50,000 registered this year and plans to extend its database by 25% by 2025, with a focus on the informal sector.
“Going into the next year, the emphasis is really probably to tap into the informal sector. So, we haven’t put in a number per se, but we are looking at a percentage to see if we can do 25%. Yeah, it’s a stretching target, but we believe it is doable, ” Chinamasa added.
In a speech read on his behalf by Zimra board chairman Anthony Mandiwanza, Finance Minister Mthuli Ncube emphasised the importance of a broader tax base in ensuring the country’s fiscal sustainability. By encouraging more individuals and businesses to participate in the tax system, the government can increase revenue without overburdening existing taxpayers.
