Online Reporter
Tapiwanashe Mangwiro
Business Member Organisations (BMOs) have applauded the newly deployed Tax and Revenue Management System (TaRMS), describing it as a tool that has made tax compliance simpler and more conducive to business.
The commendations came during the third strategic engagement between BMOs and the Ministry of Industry and Commerce, where several associations acknowledged the Zimbabwe Revenue Authority (ZIMRA) for introducing the digital system.
Zimbabwe National Chamber of Commerce (ZNCC) president, Mr Tapiwa Karoro, said the system had transformed the ease of doing business by eliminating most of the bottlenecks that companies had long complained about.
“TaRMS is not just an upgrade, it is a game-changer. For the first time, businesses can file and settle their obligations with clarity and speed. This will go a long way towards restoring investor confidence,” he said.
Mr Karoro noted that by enabling predictable planning, businesses are now able to manage their cash flow more effectively and allocate resources without the uncertainties that previously characterised tax administration.
The Zimbabwe Building Contractors Association (ZBCA), represented by its chief executive officer Ms Joyline Zindaga, also welcomed the system.
“TaRMS reduces bureaucratic wrangles that used to derail project timelines. Contractors can now plan with predictability and execute with confidence,” she said.
Ms Zindaga pointed out that for the construction industry, delays caused by unclear tax assessments or lost paperwork often led to significant cost overruns but the new system had introduced clarity and reliability.
At the engagement, business leaders stressed that TaRMS had improved transparency by ensuring tax assessments were clear and consistent, reducing disputes between the authority and companies. They highlighted that the transition from weeks of waiting for processing to having filings and assessments completed in hours had instilled trust in the system. Beyond efficiency, executives said the platform was creating an incentive for businesses operating informally to step into the formal economy.
Industry and Commerce Minister Mangaliso Ndlovu, responding to the applause from BMOs, said the Government would continue aligning its reforms with the needs of the private sector.
“We are pleased that TaRMS is being embraced by industry. Our aim is to ensure that systems like this not only simplify compliance but also foster growth, formalisation and competitiveness,” he said, adding that the ministry would maintain regular engagements with businesses to monitor progress and address emerging challenges.
For years, Zimbabwe’s economy has been characterised by a high level of informalisation, with surveys estimating that between 65% and 75% of activity falls outside the tax net. The ZNCC has previously flagged this as a critical barrier to sustainable growth, limiting fiscal planning and undermining competitiveness.
Since the rollout of TaRMS, however, ZIMRA has reported encouraging signs of improvement. Preliminary figures suggest a 10% increase in small enterprises registering for Value Added Tax (VAT) during the first quarter of implementation, reflecting growing compliance and inclusion.
Figures presented by Commissioner of Domestic Taxes, Mr Misheck Govha, at the TaRMS launch earlier this month showed that newly registered taxpayers rose from 30 689 in 2023 to 66 210 in 2024, a 115,7% increase. In the first half of 2025 alone, the system captured an additional 45 726 registrations.
The system’s foundations were set out earlier this year in a presentation by Mr Govha, who explained that the objectives were to modernise tax administration, increase transparency, and strengthen revenue collection. These objectives are already being felt in practical terms by companies that have long lobbied for an easier, more predictable business environment.
For many in the private sector, the biggest gain lies in predictability. With tax obligations now transparent and deadlines clearly communicated, businesses can budget accurately and avoid the financial strain that uncertainty often caused. For contractors and manufacturers alike, that means fewer disputes with the tax authority and more time focused on operations.
The broader implications stretch beyond administration. By aligning Zimbabwe’s public systems with modern digital standards, TaRMS is reshaping perceptions of the country’s business environment.
Mr Karoro argued that a reliable and transparent tax system sends a strong signal to both local and foreign investors that Zimbabwe is committed to reform.
“TaRMS does not just change business processes, it reshapes investor perception. A reliable tax system signals stability, and that’s the cornerstone of sustainable growth,” he said.
The plaudits from business leaders underscore the alignment between private sector needs and public sector delivery. For ZIMRA and the Ministry of Industry and Commerce, that recognition may serve as both a validation of reform efforts and a reminder of the need to sustain momentum.
Online Reporter