By A Correspondent
In a move that many view as a further burden on already struggling citizens and companies, the Zimbabwe Revenue Authority (ZIMRA) has announced a target to collect over USD 7 billion in taxes this year, following a successful 2024 revenue collection period.
ZIMRA Commissioner General, Ms. Regina Chinamasa, revealed that the institution exceeded its 2024 target, collecting over USD 6 billion. “We have surpassed our targets for the year, and as we move forward, we have set an even more ambitious target of over USD 7 billion,” she stated, underlining that these funds are crucial for government projects and ongoing expenses.
The revenue collection will come from a range of taxes, including Value Added Tax (VAT), corporate tax, customs duties, Pay As You Earn (PAYE), and mining royalties. These taxes are expected to help sustain capital projects and cover the government’s employment costs.
“The focus is on working with taxpayers to generate more revenue,” Chinamasa emphasized, suggesting that the government’s strategy involves pushing harder on the already burdened public and businesses. She also highlighted that Zimbabwe’s tax collection ability has grown, saying, “Zimbabwe has what it takes in terms of resource mobilisation and revenue generation. We are using all the relevant instruments to collect more taxes.”
However, many citizens and businesses are struggling to cope with the rising cost of living, inflation, and a fragile economy. Critics argue that the government’s continued tax hikes, including the anticipated surge in revenue collections, will further squeeze the pockets of the already suffering population. “While ZIMRA sees this as a positive trajectory, many citizens and businesses feel they are being milked dry with taxes that are unsustainable,” one economic analyst noted.
Additionally, despite international financial support accounting for at least 20% of Zimbabwe’s national budget, it remains subdued, and the country’s domestic resource mobilisation remains key. Chinamasa further stressed, “It is our mandate to ensure government projects are adequately funded, and we will continue focusing on long-term measures to boost revenue inflows.”
In line with the country’s devolution agenda, a portion of the tax revenue will be directed toward infrastructure development across Zimbabwe, but it remains to be seen whether these projects will benefit the majority of citizens who are already struggling to make ends meet.
The anticipated rise in revenue collections is also expected to rely heavily on increased compliance from industry and commerce, reduced revenue leakages, and improved economic conditions, including a favorable summer cropping season. But with many facing dire economic challenges, the government’s heavy-handed taxation policies are likely to remain a contentious issue.