Online Reporter
Sikhulekelani Moyo
Zimpapers Business Hub
THE Government has pinned its financing plans for the Vision 2030 aspirations on domestic resource mobilisation, anchored on enhanced tax administration, strengthening anti-smuggling strategies, among others.
Similarly, the implementation of complementary reforms to support increased tax compliance by micro-small and medium enterprises and the informal sector is also a key element of the resource mobilisation strategy.
This was said by Minister of Finance, Economic Development, and Investment Promotion Professor Mthuli Ncube in the 2026 Budget Strategy Paper.
Prof Ncube said revenue performance should be commensurate with the general growth trajectory of the economy, with all income-generating activities attributable, directly and indirectly, supposed to contribute to the fiscus.
“The realisation of a Prosperous and Empowered Upper-Middle Income Society by 2030 requires an effective domestic revenue mobilisation strategy anchored on the principles of equity, fairness, efficiency and transparency,” said Prof Ncube.
“Principally, revenue performance should be commensurate with the general growth trajectory of the economy; hence, all income-generating activities attributable, directly and indirectly, should contribute to the fiscus.
“The strategy will also take into consideration the need to attract and retain both domestic and foreign investment.”
Prof Ncube said this requires a balance between providing the necessary incentives and optimum mobilisation of tax revenues to meet Government operations.
The domestic revenue mobilisation strategy for the year 2026 will, as presented by Prof Ncube, focus on enhancing tax administration to improve execution on strategies for implementation of existing and new policy measures.
It will also focus on strengthening the anti-smuggling strategies under the Enhanced Post Clearance Audit Initiative.
The Government will also focus on continuous streamlining of tax expenditures, which are no longer aligned with current policy priorities, while also benchmarking with competing regional and international peers.
The strategy will also explore mechanisms to align the tax contribution of key growth sectors to their share of the gross domestic product (GDP) and explore mechanisms to improve collaboration among Government agencies, leveraging on technology and big data in order to reduce incidences of tax avoidance, evasion and corruption.
The Government is also looking forward to initiating processes to commence a programme to simplify tax legislation.
Experts continue to urge Zimbabwe to boost domestic resource mobilisation, as it is critical for the sustainable growth of the economy going forward, as external financing for the country is likely to remain constrained.
Zimbabwe’s debt to international financial institutions, including the African Development Bank, the World Bank and the European Investment Bank, stands at approximately US$3,2 billion, which has blocked the country from accessing funding from multilateral lenders.
This is part of the country’s US$21 billion total sovereign debt.
However, since 2022, the Government of Zimbabwe has been making efforts to clear its debt and arrears, and the Government has agreed with its foreign creditors on a comprehensive package of reforms, as part of the debt resolution framework.
The reforms are structured around three main pillars.
The first pillar focuses on economic stabilisation and growth, aiming to create a more stable and prosperous economic environment.
The third pillar is on Governance, highlighting the importance of effective governance in managing the country’s resources and development programmes.
