Online Reporter
Tapiwanashe Mangwiro
ZIMBABWE’S new Tax and Revenue Management System (TaRMS) has more than doubled taxpayer registrations within a year, highlighting the significant reform in the country’s tax administration.
Figures presented by the Commissioner of Domestic Taxes, Mr Misheck Govha, at the TaRMS launch last week showed that the number of newly registered taxpayers rose from 30 689 in 2023 to 66 210 in 2024, a 115,7 percent increase.
In the first half of 2025 alone, the system captured an additional 45 726 registrations.
The shift represents a break from years of bureaucratic inefficiency under the old system, where manual processes and data inaccuracies crippled compliance and enforcement.
“TaRMS has not only modernised our tax administration but has restored integrity and efficiency in ways the old system could not,” Mr Govha said at last week’s event.
Economist Ms Gladys Shumbambiri-Mutsopotsi commented: “TaRMS has the potential to be more than just a compliance tool; it can gradually draw activity from the shadows of the informal economy into the tax net.
“With as much as 70 percent of our economy operating informally, improved registration and automated monitoring will create visibility. Over time, this transparency helps the Government build a broader base without leaning heavily on already compliant businesses.”
Ms Shumbambiri-Mutsopotsi said digitisation of tax administration was crucial for formalisation.
“TaRMS lowers barriers to compliance by making it easier and less costly for small businesses to register and meet obligations,” she said. “If implemented consistently, it could slowly reduce the dominance of the informal sector and improve public revenues, which in turn strengthens the State’s ability to invest in infrastructure and social services.”
Dr Prosper Chitambara, another economist, said the increase in the tax base had numerous positive effects for the overall economy.
“Increasing the tax base, as the TaRMS system facilitates, offers substantial benefits to the broader economy,” he said.
“A wider tax net means the Government can mobilise more domestic revenue, which can then be invested in infrastructure, health and education, key enablers of sustainable economic growth.
“It also helps formalise segments of the economy, improving transparency and reducing the informal sector’s vulnerability to shocks. Over time, a broader tax base can lower reliance on debt and external borrowing, enhancing fiscal stability and investor confidence.”
Beyond registrations, TaRMS has transformed multiple aspects of tax administration.
The platform has been integrated with the Registrar of Companies, the Civil Registry and banks to validate taxpayer details, reducing fraud that had plagued the system.
Return submissions have improved significantly, though the commissioner admitted that compliance still lagged behind the global TADAT (Tax Administration Diagnostic Assessment Tool) target of 80 percent on-time filing.
The system now automates debt management, generating payment plans and initiating collections, easing the burden on both taxpayers and the authority.
Audit, investigation and compliance processes have shifted to a centralised digital platform.
Cases are automatically selected, stored in an electronic repository and tracked in real time, enabling swifter remedial action.
Taxpayers receive immediate notifications on audit amendments or requests, and can file voluntary disclosures online.
For case management, appeals and objections are submitted electronically, with automatic acknowledgements. Records are now stored centrally, ensuring institutional memory and easy reference.
By contrast, the old system left tax officials and taxpayers mired in inefficiencies.
Registration was largely manual, with no validation of submitted details.
Duplicate business partner numbers were common, one for foreign currency and another for the local unit, forcing taxpayers to file multiple returns for a single period.
The tax clearance system was not automated and required human intervention, even for compliant taxpayers.
Fraud was rife because the previous platform, SAP (Systems Applications and Products in Data Processing), lacked verification capabilities, leaving suppliers unable to authenticate clearance certificates online.
Payment processes were also flawed.
Mispostings and duplications were frequent, while a lack of validation for taxpayer names, tax types and tax periods led to unallocated payments.
The e-filing platform was unstable, and critical processes such as capital gains tax returns still required manual handling.
Mr Govha said: “Audit, compliance and debt management were paper-based, slowing investigations and creating gaps in accountability. Even refunds required manual handling, a source of delays and mistrust between taxpayers and the authority.”
TaRMS has replaced this patchwork with a unified digital backbone.
The system uses a Self-Service Portal (SSP), where taxpayers can view ledger statuses, pending returns, and receive updates. Public officers can delegate tasks electronically, ensuring work continuity.
The use of QR codes on tax clearances enables suppliers and third parties to verify authenticity instantly, reducing fraud.
Debt collection and refund processing have been standardised and are monitored on the platform, while taxpayer behaviour is tracked and categorised through analytics modules, supporting risk-based compliance strategies.
“Cases are now visible across the authority with proper permissions, which not only improves transparency, but strengthens trust in our processes,” Mr Govha added.
The overhaul comes at a critical time for Zimbabwe, where expanding the tax base and restoring credibility in public institutions remain central to economic reform.
By streamlining taxpayer services, the authorities hope to encourage compliance and boost revenue mobilisation without overburdening the same contributors.
While challenges remain, especially in pushing return submissions closer to international benchmarks, the adoption of TaRMS signals Zimbabwe’s intent to close loopholes that cost the State millions in forgone revenue.
For taxpayers long accustomed to inefficiency, the contrast is stark.
Instead of queuing with physical documents, businesses and individuals now operate within a system that automates most processes and significantly reduces room for human discretion.
“TaRMS has redefined the taxpayer experience by making compliance simpler, transparent and verifiable,” Mr Govha said.
