Zimra urged to scale up grassroots engagement to demystify taxation

THE Zimbabwe Revenue Authority (Zimra) has been challenged to intensify grassroots engagement with informal traders and residents to improve tax literacy and dismantle the negative perceptions currently clouding the national tax collector’s mandate.

This emerged during an Open Policy Dialogue on Informal Sector Taxation held in Bulawayo on Friday.
The engagement, hosted by the Vendors Initiative for Social and Economic Transformation (VISET) in partnership with the Bulawayo Vendors and Traders Association (BVTO), brought together tax officials, local Government representatives and informal economy actors to address bottlenecks in tax compliance and the ease of doing business.

Addressing delegates, Ministry of Women Affairs, Community, Small-to-Medium Enterprise Development Advisor for Bulawayo Province Mr Dumisani Ncube, said formalisation unlocks significant fiscal advantages for small businesses.

“I urge participants to engage Zimra in order for them to get an appreciation of the facilities on hand, such as various rebates that can be enjoyed, for as long as one is tax compliant,” Mr Ncube said.

He further encouraged SMEs to transition from presumptive tax to self-assessment systems to ensure fairness.

“I urge SMEs to register for self-assessment, as opposed to being subjected to presumptive tax, as this is a fairer tax system, although it requires traders to keep proper tax records,” he added, noting that the Government is actively reducing the cost and number of permits to improve the ease of doing business.
VISET executive director, Mr Samuel Wadzai, explained that the discussions were part of the Local Accountability for Citizen Engagement (LACE) project, supported by Development Alternatives Incorporated (DAI) and the Foreign, Commonwealth and Development Office (FCDO).

“The taxation dialogues are part of the Local Accountability for Citizen Engagement, enabled by support from DAI and the FCDO.

“These provincial dialogues will provide input to the National Open Policy Dialogue on Taxation to be convened in Harare later this month with the Ministry of Finance, Economic Development and Investment Promotion,” Mr Wadzai said.

Zimra officials at the forum admitted that the “fear factor” associated with the authority often stems from a lack of awareness regarding duty tariffs and registration benefits.

They committed to launching more inclusive awareness campaigns, specifically targeting special interest groups, to broaden their reach.

The dialogue also highlighted a major victory for local advocacy.

Officials from the Bulawayo City Council’s health and finance departments confirmed that the 2026 Council Budget now includes the construction of two clinics in Cowdray Park.

Furthermore, the city has allocated funds for “safe markets” which will feature dedicated children’s play areas, catering to traders who often work with their children present.

The insights gathered from the Bulawayo engagement are expected to form a key part of the upcoming national policy discussions aimed at formalising the informal sector while ensuring a human-centred approach to revenue.