Online Reporter
Michael Tome-Business Reporter
The Zimbabwe Revenue Authority (Zimra) is confident about its prospects of meeting the 2025 revenue target of US$7,2 billion, with the tax authority indicating several initiatives have been rolled out to drive collections.
Zimra’s multi-faceted approach includes expanded audit coverage, specific sector interventions, formalisation of the informal sector and intensified taxpayer education and enforcement initiatives.
According to Zimra, the projected six percent economic growth and stabilising macroeconomic conditions are expected to foster a favourable environment for revenue mobilisation.
Strategic focus for 2025 will be on automating customs processes, scaling up projects such as the Zimbabwe Electronic Single Window (ZeSW), drone surveillance and ASYCUDA (Automated System for Customs Data) World upgrade to modernise border management and improve trade facilitation.
Additionally, the authority said it would consolidate and optimise domestic tax digitisation projects, including TaRMS (Tax and Revenue Management System) and FDMS (Fiscalisation Data Management System), to enhance compliance oversight and analytical capability.
Zimra also highlighted that it will leverage technology and innovation to improve service delivery, institutional resilience and overall revenue performance.
The authority’s commitment to modernisation and digital transformation is expected to drive growth, efficiency and effectiveness in revenue collection, ultimately supporting Zimbabwe’s economic development.
“As we pivot to 2025, Zimra’s strategic focus intensifies around the automation of customs processes, which forms the core pillar of our strategy for the final year of the plan.
“Projects such as the ZeSW, drone surveillance, and the ASYCUDA World upgrade are being scaled up to modernise border management, improve trade facilitation and bolster compliance through intelligent risk profiling and automated decision-making,” said Zimra chairman Mr Anthony Mandiwanza while addressing stakeholders at the authority’s 2024 annual general meeting.
Mr Mandiwanza also said Zimra would finalise its domestic tax digitisation projects, TaRMS and FDMS, and shift focus to optimisation, user adoption and integration with third-party platforms to boost compliance and analytics.
“At the same time, 2025 will see the consolidation and winding up of our transformative domestic tax digitisation projects, TaRMS and FDMS. With these now operational, focus shifts to optimisation, user adoption and integration with third-party platforms to enhance compliance oversight and analytical capability.
These developments underscore Zimra’s commitment to innovation, institutional resilience and improved service delivery,” he said.
This comes after Zimra surpassed its 2024 net revenue target, collecting ZiG116,47 billion against a target of ZiG105,63 billion, achieving a 10,26 percent positive variance.
According to Zimra, major contributors to revenue growth were Value Added Tax, which surged 39,46 percent and accounted for 31,21 percent of the total revenue.
Pay As You Earn (PAYE) jumped 56,5 percent and contributed 19,38 percent to the overall target.
Corporate Income Tax (CIT) rose 85,25 percent and contributed 15,40 percent, while excise duty grew by 20 percent and chipped in with 11,9 percent to total collections.
Customs Duty increased 6,89 percent and brought in of 6,79 percent of the budgeted revenue. Other notable growth areas included intermediated money transfer, which contributed 5,71 percent of total revenue.
Mining Royalties and excise duties underperformed due to declining global commodity prices and shifts in consumer preferences towards low-cost, smuggled alternatives, respectively.
Speaking during the 2024 Annual General Meeting, Zimra Commissioner General Ms Regina Chinamasa said growth in revenue collections showcases the effectiveness of the authority’s revenue strategies and the unwavering commitment of its staff in managing a challenging economic landscape.
“Zimra surpassed its 2024 net revenue target, collecting ZiG116,47 billion against a target of ZiG105,63 billion, achieving a 10,26 percent positive variance.
“This outcome is a testament to the efficacy of the Authority’s revenue mobilisation strategies and the steadfast dedication of staff in navigating a complex economic environment,” said Ms Chinamasa.
In 2024, Zimra achieved significant operational transformation through key projects, including TaRMS, FDMS, ZeSW and drone surveillance.
These initiatives enhanced revenue collection, border surveillance, trade facilitation and compliance oversight.
Notably, TaRMS revolutionised tax administration by automating core processes, improving taxpayer service delivery and boosting voluntary compliance and operational efficiency.
Despite its notable achievements, Zimra still faces significant challenges, including tax evasion, non-compliance by the informal sector, currency volatility, resource constraints and over-reliance on a limited number of economic sectors.
These ongoing issues require continued innovation, strategic planning, and effective enforcement to ensure sustainable revenue growth and improved tax compliance.
Addressing these challenges will be crucial for Zimra to achieve its revenue targets and support Zimbabwe’s economic growth and development.
