ZIMRA targets wider tax base

CLOUDINE MATOLA

The Zimbabwe Revenue Authority (ZIMRA) is targeting the addition of at least 50,000 new taxpayers this year, with an ambitious stretch goal of bringing up to 100,000 eligible individuals and businesses into the tax net, Business Times can report.

Speaking on the sidelines of the authority’s annual general meeting, ZIMRA Commissioner-General Regina Chinamasa said the tax collector’s strategy is centred on expanding the tax base while prioritising sustainable, high-value taxpayers.

“In terms of the expansion of the tax base, we are targeting above 50,000. Depending on how effective our strategies are, we are targeting probably anything above that, up to 100,000. That is our target,” Chinamasa told Business Times.

“But we are also looking at sustainability and ensuring that we focus on high-return, quality taxpayers. The thrust is to ensure that all those who are eligible come on board.”

Chinamasa said ZIMRA’s approach has two key components: registering previously unregistered taxpayers and strengthening systems to detect and curb tax evasion.

“So there are two legs. There are those who are not registered; we are expanding the tax base and making sure that they register, and we account for the various taxes that they are supposed to be contributing towards,” she said.

“Secondly, we have put in place the Fiscalisation Data Management System, which is helping us pick up data so that we can validate the submissions being made. For those engaged in pure tax evasion and cross-border transactions, we are putting in frameworks. We are also partnering with other customs agencies for exchange of information, especially through the customs forum.”

Meanwhile, ZIMRA is targeting revenue collections of US$9.2bn this year and has already achieved nearly 47% of that goal. Chinamasa said the authority is on course to surpass its annual target.

“So our year-to-date collections are already close to 47% of our annual target of US$9.2bn, but we are always stretching ourselves to ensure that we support different programmes by collecting additional revenue. Our target is really to exceed the annual target,” she said.

“Currently, I think we are above target by almost 20%, so looking to the end of the year, we should be able to maintain and sustain that run rate.”

Chinamasa also revealed that ZIMRA has intensified enforcement measures, including a crackdown on luxury vehicles imported without the payment of duty and the conduct of lifestyle audits targeting high-value importers and wealthy individuals.

“Our thrust in terms of enforcement is not just focusing on luxury motor vehicles; we are conducting lifestyle audits on high-value importations,” she said.

“We are also looking at ensuring that high-net-worth individuals are captured within the tax net. Regarding luxury motor vehicles, we have observed growth in the motor industry and an increase in high-value vehicles. We are therefore focusing on proper importation procedures, valuation and ensuring compliance with statutory obligations.”

The revenue authority is also enforcing duty payments on vehicles imported under returning resident and Temporary Licence Permit (TLP) facilities that were not subsequently re-exported, as part of efforts to plug revenue leakages and enhance tax compliance.