ZIMRA buoyant
CLOUDINE MATOLA
The Zimbabwe Revenue Authority (ZIMRA), the country’s tax collector, is optimistic about achieving its ambitious revenue target of US$7.155bn this year, driven by enhanced tax compliance, digital expansion, and administrative efficiency improvements.
ZIMRA Board Chairperson Antony Mandiwanza has expressed strong confidence in the authority’s ability to meet this target, citing strategic interventions and policy measures as key enablers.
“The outlook for Zimbabwe’s revenue collection in 2025 is positive, with a target of US$7.155bn, representing a 17% increase from the 2024 target. This ambitious goal is supported by various revenue-enhancement measures, including improved tax compliance, expanded digital platforms, and enhanced administrative efficiencies within the Zimbabwe Revenue Authority (ZIMRA),” Mandiwanza said.
To achieve this ambitious target, ZIMRA is focusing on bolstering tax compliance through strict enforcement measures and policy interventions aimed at broadening the tax base.
The tax authority is also leveraging technology to streamline revenue collection and minimize leakages.
Mandiwanza highlighted that the successful implementation of these policy interventions will be critical in achieving the set target, despite external economic challenges such as fluctuating global commodity prices and macroeconomic instability.
“Key to achieving this target will be the successful implementation of policy interventions aimed at broadening the tax base and reducing evasion. While external factors like global economic conditions and commodity price fluctuations pose challenges, the combination of strategic reforms, technological advancements, and ongoing institutional improvements provides a strong foundation for meeting the revenue target and fostering economic growth,” he stated.
ZIMRA reported a robust revenue performance in 2024, surpassing its target.
The gross annual tax revenue amounted to ZWG110.50bn, exceeding the target of ZWG105.73bn by 4.51%.
After accounting for refunds totaling ZWG3.38bn, the net collection stood at ZWG107.12bn.
Notably, total net revenue for the second half of 2024 reached ZWG69.22bn, outperforming the projected ZWG64.60bn by 7.15%.
The revenue structure was diversified, with excise duty contributing 11%, individuals 22%, and value-added tax (VAT) making up 30%—comprising 19% from local sales and 11% from imports.
Despite the positive revenue performance, ZIMRA continues to grapple with outstanding tax debts from private companies, state enterprises, and parastatals.
According to Mandiwanza, 80% of the debt arises from new assessments conducted through audits and investigations, reflecting the authority’s proactive stance on tax compliance enforcement.
“The Authority is owed by both private companies and public institutions, including state enterprises and parastatals. Notably, 80% of the outstanding debt stems from new assessments resulting from thorough audits and investigations, reflecting the Authority’s proactive approach to identifying and addressing potential discrepancies. The remaining 20% represents uncollected current obligations not honored, and the Authority is actively implementing a range of strategies to ensure the timely collection of taxes owed by clients. These efforts are helping to support the Authority’s ongoing mission of enhancing fiscal responsibility,” Mandiwanza stated.
In the second half of 2024, ZIMRA facilitated trade valued at US$5.17 billion from imports and US$4.09 billion from exports. The authority continues to implement measures to curb tax evasion at border points while optimizing customs revenue collection.
As Zimbabwe’s tax collector sets its sights on the 2025 revenue target, ZIMRA remains committed to driving efficiency, embracing digital transformation, and enforcing compliance to ensure sustainable revenue growth. With a combination of strategic interventions and policy reforms, the authority is poised to meet its ambitious goal, reinforcing its critical role in national economic development.
