Self-financed development new frontier for Zim’s sovereignty

Professor Mthuli Ncube

When the Zimbabwe Revenue Authority (ZIMRA) was established in 2001, our economy, technology and patterns of commerce were very different.

YET its fundamental mandate has remained constant: to mobilise revenue, administer tax and customs laws and facilitate legitimate trade and travel.

Over these 25 years, ZIMRA has responded to the changing economic dictates of our country.

From collecting millions in its early years, the authority now mobilises billions in revenue.

That is not merely the story of an institution growing in size.

It is also a reflection of an economy that has evolved, expanded and become increasingly complex.

A growing economy, a growing revenue base

Today, Zimbabwe is a US$66 billion-plus economy and continues to grow.

As our economy expands, ZIMRA must rise with it.

A growing economy must produce a growing revenue base, because a stronger revenue base gives Government greater capacity to finance national priorities and development.

This is the deeper meaning of domestic resource mobilisation.

It is about economic sovereignty, fiscal resilience and our capacity as a nation to finance our own development.

As Zimbabwe advances towards Vision 2030, Government expects ZIMRA to broaden the tax base, strengthen compliance, reduce revenue leakages and make compliance simpler, fairer and more predictable.

Our ambition is to raise the tax-to-GDP (gross domestic product) ratio to 22 percent by 2030, consistent with our national development objectives and regional convergence ambitions.

That is the standard against which the next phase of ZIMRA’s journey must be measured.

Recognising leadership of the Second Republic

It is also important to recognise the leadership and guidance provided by the Second Republic under the astute leadership of President Mnangagwa.

The initiatives undertaken by the Second Republic to stabilise the economy, strengthen macroeconomic management, promote investment, support productive sectors and create an environment for sustainable economic growth have an important bearing on our capacity to mobilise domestic resources.

A growing economy creates a broader and more sustainable tax base from which Government can finance national development.

This is particularly significant at a time when many developing countries, including Zimbabwe, face constrained access to affordable international financing, rising financing costs and a shrinking pool of development assistance.

In this environment, domestic resource mobilisation is not simply a revenue administration objective; it is an essential pillar of economic sovereignty and national resilience.

The stability and growth of the economy, therefore, provide the foundation upon which ZIMRA must build.

As the economy expands, new businesses emerge, investment increases and economic activity becomes more sophisticated, the authority must ensure that the tax base expands alongside the economy and that every taxpayer contributes fairly and lawfully to the financing of national development.

We, therefore, acknowledge the policy direction, guidance and initiatives of the President and the Second Republic, which have created important conditions for strengthening domestic resource mobilisation and advancing Zimbabwe towards its Vision 2030 objectives.

Partnership

But behind every dollar mobilised is a taxpayer, a business, a worker, an entrepreneur or a trader participating in Zimbabwe’s economy.

That is why, as we celebrate ZIMRA’s Silver Jubilee, we also celebrate our taxpayers.

When taxpayers meet their obligations, they help Government turn national resources into roads, schools, hospitals, public services and opportunities for our people.

Your contribution matters.

Your compliance matters.

And ultimately, Zimbabwe benefits.

The relationship is, therefore, clear: Government must administer the tax system fairly, professionally and responsibly, while citizens and businesses must meet their lawful obligations.

When that social contract works, the whole nation moves forward.

A whole-of-Government partnership

ZIMRA does not operate in isolation.

Effective revenue mobilisation, secure borders and the facilitation of legitimate trade depend on a coordinated whole-of-Government approach.

We extend our sincere appreciation to the Government ministries, departments and agencies that work alongside ZIMRA every day in the discharge of our respective mandates.

Their collaboration is indispensable to the protection of national revenue, the security of our borders, the facilitation of legitimate trade and the protection of our citizens and economy.

We particularly recognise our security agencies and law-enforcement institutions whose support is critical in preventing and responding to illicit activities, including smuggling, fraud, corruption and other forms of economic crime.

Their cooperation with ZIMRA strengthens our ability to undertake both preventive interventions and remedial enforcement action where revenue, health, safety and biosecurity, among others, would have been compromised.

At our ports of entry and throughout the country’s trade corridors, these agencies operate as partners in a common national endeavour.

Effective border management requires us to work together, share information, coordinate interventions and deploy our respective capabilities in a manner that protects national interests while minimising unnecessary impediments to legitimate trade and travel.

This whole-of-Government partnership must become even stronger. The nature of smuggling, corruption, illicit financial flows and other forms of economic crime is becoming increasingly sophisticated.

Our response must, therefore, be equally coordinated, intelligence-led and technology-enabled. Where prevention succeeds, revenue is protected; where violations occur, effective law enforcement and remedial action must ensure accountability and recovery.

The success of ZIMRA is, in many respects, a reflection of the strength of the institutions with which we collaborate.

Together, we protect Zimbabwe’s revenue, secure its borders and facilitate the legitimate movement of people and goods.

A legacy with a future

The Zimbabwe of tomorrow will be more sophisticated, more interconnected and increasingly digital.

ZIMRA must, therefore, remain equal to the economy it serves, modern in its systems, intelligent in its administration, efficient at our borders and responsive to the taxpayers who sustain our nation.

Above all, ZIMRA must remain an institution that commands public confidence: firm where the law requires firmness, fair in its administration, professional in its conduct and responsive in its service. That is the ZIMRA that Zimbabwe needs.

Twenty-five years gives ZIMRA a proud legacy. It does not, however, permit the institution to stand still.

The next era must be defined by smarter revenue mobilisation, greater economic participation, better service and stronger trade facilitation. In addition, it must be an institution capable of anticipating the economy it serves. That is the standard Government sets for ZIMRA.

 Prof Mthuli Ncube is the Minister of Finance, Economic Development and Investment Promotion. He was speaking at the commemoration of ZIMRA’s Silver Jubilee anniversary in Harare last week.

 

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