Proposal for Zimra to retain 3pc revenue for operations

Farirai Machivenyika Senior Reporter

The Zimbabwe Revenue Authority (Zimra) should be allowed to 3 percent of the revenue it collects as provided by the Revenue Authority Act Constitution to enable it adequately fund its operations and curb leakages, Parliament’s Budget Finance and Economic Development Committee has said.

The Committee made the recommendation in a report in response to a petition from the Zimbabwe Revenue and Allied Workers Trade Union (ZIMRATU) on retention of funds and funding model for Zimra. In its report, the Committee through its chairman, Dr Matthew Nyashanu and Buhera Central legislator, concurred with ZIMRATU’s proposal for a retention fund to be created for Zimra.

“The Ministry of Finance and Economic Development should allow ZIMRA to retain three percent of the revenue collected in each fiscal as stated in Section 27 of the Revenue Authority or otherwise review the percentage in accordance with the performance of the economy by December 2022,” Dr Nyashanu said.

He added that the arrangement, though provided for in the Act was not being implemented, with the finance ministry releasing money in tranches thereby micro-managing the tax collector.

“This has been the source of inefficiency as the Authority is failing to timeously meet its financial obligations particularly those of interest to the trade union that relate to staff welfare over and above operational needs. In 2021, for example, Zimra received only 54 percent of its operational budget and this impacted on staff welfare issues over and above the other operational requirements of the Revenue collector,” he added.

Dr Nyashanu added that the Zimra board should be allowed to independently make critical decisions on staff recruitment, remuneration, without interference but within the confines of the budget.

He added that the Committee believed that Zimra as the sole Government agent mandated to collect revenue on behalf of Government must be adequately funded because the country was losing a lot of revenue due to its operational challenges that require predictability and timely funding to deal with.

“As such, the Committee recommends that government invests in strengthening revenue collection through allowing Zimra to retain a certain percentage of its collections and then give the board performance targets which they have to meet without excuses relating to funding challenges. Thus, the Committee tables this report with the hope that the 2023 budget will address the major concerns raised therein,” he added.