Online Reporter
Michael Tome
Business Reporter
THE Zimbabwe Revenue Authority has registered about 100 000 new taxpayers this year as part of efforts to grow the national tax base and integrate small and medium enterprises into the mainstream economy as they formalise.
The progress in bringing in new potential taxpayers was announced by ZIMRA commissioner general Ms Regina Chinamasa, in a speech read on her behalf by the head of compliance and automation, Mr Adrian Swarres, during a public lecture at the Zimbabwe National Defence University in Harare yesterday.
In the lecture on Systems, Processes and Challenges of Public Revenue Collection in Zimbabwe, Ms Chinamasa said the expansion of registrations followed a series of targeted outreach programmes aimed at small and medium enterprises as well as informal traders, providing simplified tax regimes to make compliance easier and more accessible.
These efforts complement the Government’s ongoing ease of doing business reforms, which include the reduction of certain fees and taxes to encourage compliance and promote business expansion.
According to the tax collector, most record keeping by smaller businesses is not at the level of the bigger companies, making the provision of simplified processes, such as the use of presumptive taxes, to bring them on board, crucial.
A presumptive tax assumes a particular tax liability and a taxpayer can often pay less by keeping far better records and having their actual tax calculated.
But a simplified tax regime for micro, small and medium enterprises in developing countries is generally designed to facilitate voluntary tax compliance and remove obstacles in moving towards business formalisation and growth.
In a separate interview with The Herald after delivering the commissioner’s speech, Mr Swarres said the initiative was part of ZIMRA’s broader strategy to enhance revenue mobilisation while supporting business growth through a more inclusive and simplified taxation framework.
“Throughout the year, we have had an outreach programme targeting small to medium enterprises. We are looking at the informal sector by providing simplified tax regimes to bring them on board, to make it easier for them to comply.
“This approach ensures that even informal sector players can participate meaningfully in national development while growing their enterprises.
“So far, we have 100 000 who have been brought on board. Now what is required is to nurture them and ensure that they grow so that they continue to contribute to the needs of the country,” said Mr Swarres.
The small businesses are a key part of Zimbabwe’s economy, accounting for about 60 percent of the country’s gross domestic product and a simplified tax regime will, in a way, promote compliance in the sector.
Normally, the simplified tax regime is designed as a simple lump sum or fixed amount of taxes targeted at microenterprises, cognisant that such businesses are often operated by entrepreneurs untrained in accountancy and tax codes.
ZIMRA also indicated that it has recorded significant growth in several key revenue heads over the past five years, led by corporate income tax, which grew by 85,29 percent.
The growth in tax heads was driven by automation of systems, improved compliance and the bringing on board of previously non-compliant clients.
The intermediated money transfer tax grew by 83,37 percent during the same period, while mining royalties increased by 62,89 percent, reflecting the strong performance of the mining sector.
Customs duty, however, registered the lowest growth at 6,83 percent, partly due to trade policy adjustments and global supply chain shifts.
According to ZIMRA, ongoing reforms are anchored on its 2021–2025 Strategic Plan, which focuses on customs automation, tax digitalisation and compliance enhancement while also working towards attaining ISO certification as part of efforts to strengthen governance and operational efficiency.
