Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
THE Consumer Council of Zimbabwe (CCZ) has cautioned that the recently announced reduction in the validity period of Tax Clearance Certificates (ITF263) by Zimbabwe Revenue Authority (ZIMRA) could be exploited by opportunistic entities if not supported by strong procurement governance, warning that some firms may secure tenders and later default.
In a statement in response to ZIMRA Public Notice 69 of 2025 which introduces a one-month validity period for ITF263 certificates with effect from December 27, 2025, CCZ executive director Mrs Rosemary Mpofu said the consumer body notes ZIMRA’s announcement that from 27 December 2025 compliant taxpayers will receive Tax Clearance Certificates (ITF263) valid for one month, reflecting continuous monthly compliance checks for the 2026 tax period and beyond.
“CCZ recognises ZIMRA’s mandate to strengthen compliance and domestic resource mobilisation. Given the central role of ITF263 in procurement, contracting, supplier onboarding and payment processing, CCZ urges careful implementation to avoid unintended disruption to compliant businesses and consumers,” said Mrs Mpofu.
While acknowledging that the policy could strengthen compliance and fairness in the market, Mrs Mpofu said the shortened validity period presents operational and cost challenges, particularly for small and medium-sized enterprises (SMEs).
“CCZ acknowledges potential benefits, including stronger compliance culture, improved fairness in competition and enhanced market integrity where automated verification systems operate reliably.
“However, monthly validity also creates higher transaction costs and uncertainty for compliant firms, especially SMEs, by increasing exposure to timing mismatches (filing, payment posting and system updates). This may disrupt procurement and payments, strain cashflows, and translate into higher consumer prices.”
The council warned that without clear safeguards, the policy could undermine the ease of doing business and consumer welfare.
“CCZ is of the view that without clear operational safeguards and service standards, the measure may reduce ease of doing business and undermine consumer welfare.”
Of particular concern, CCZ noted risks raised by stakeholders regarding procurement abuse under short certificate validity periods.
“CCZ notes stakeholder concerns that short validity periods may be exploited by opportunistic entities to secure tenders and then default. This risk is best addressed through procurement governance that enforces continuous compliance throughout the contract life.
“Minimum controls recommended for procuring entities: Require valid ITF263 at key checkpoints: bid submission, award/contract signing, and at every payment milestone.
“Include contract clauses allowing suspension/termination for loss of compliance status during performance, supported by performance security where appropriate.
“Strengthen due diligence and use digital verification at payment stage to prevent reliance on outdated or unauthenticated certificates.”
CCZ also questioned the extent of prior consultations ahead of the policy shift.
“CCZ cannot, from information in the public domain, confirm the scope and depth of prior stakeholder consultation. Given the scale of potential disruption, CCZ calls for structured engagement and a balanced implementation approach.”
The council urged ZIMRA and other stakeholders to urgently engage on implementation details.
“CCZ calls on ZIMRA and key stakeholders to convene an urgent implementation roundtable (business associations, SMEs, procurement authorities, tax practitioners, banking/fintech and consumer bodies) to address operational risks.
“Publish clear monthly ITF263 service standards (turnaround times, escalation channels and dispute resolution timelines), including treatment of posting/system delays.
“Adopt a risk-based approach: consistently compliant, low-risk taxpayers may be granted a rolling 3–6month validity (with continuous monitoring), while higher-risk entities remain on monthly validity until compliance improves.
“Align procurement practice to continuous compliance by standardising ITF263 verification during contract execution and at payment stages.”
Reaffirming its support for revenue mobilisation, CCZ said reforms must not unfairly burden compliant firms or consumers.
“CCZ supports lawful measures that strengthen compliance and broaden the revenue base. Nonetheless, reforms must be implemented in ways that do not unintentionally punish compliant businesses, disrupt supply chains, and thereby raise consumer prices.
“Consumer Council of Zimbabwe stands ready to engage ZIMRA, Treasury, procuring entities and business representatives to ensure the ITF263 regime achieves its objectives while safeguarding ease of doing business and consumer welfare.”
