Zimra to beat revenue target, takes aim at informal sector

via Zimra says to beat FY revenue target, takes aim at informal sector | The Source April 30, 2014

Zimbabwe’s tax agency says it is likely to exceed its $4.1 billion revenue target for 2014 through tightening its monitoring systems, cooperation from and widening the tax collection base to the informal sector.

The government relies almost entirely on tax collections to fund its operations, but has consistently failed to meet targets as the economic base continued to shrink.

But tax agency has in recent times tightened monitoring of individual remuneration and increased corporate audits, which boosted revenue income for the first quarter, enabling it to beat its first quarter target of $818 million by two percent.

“I am optimistic that the 2014 revenue target will be surpassed,” Zimra commissioner general Gershom Pasi said at the launch of the Zimra-to-Business Forum on Wednesday.

“For April, things are looking good,” he added.

Pasi said the agency was working on pilot programmes to capture revenue contributions from the informal sector, targeting mostly micro, small to medium enterprises sector and would even extend to taxi operators.

“We are doing various pilot projects and after that we will be in a position to know how much we need to invest in the programmes,” he said.

The agency, Pasi said, was working with various government institutions to provide infrastructure for the informal sector which would make it easy for the sector to pay tax.

It is estimated that between $3 billion and $7 billion is circulating in the informal sector, which currently does not pay any form of taxes.

“Taxis will be metered, the receipt that one will get after using it will be a fiscal receipt,” Pasi said.

“We will start with five taxis as a pilot then fine tune it before we put it across,” he said.

The Zimra-to-Business Forum aims at fostering cooperation between the revenue agency and various business associations.

The forum is made up of seven economic clusters which are trade facilitation, finance and insurance, industry and commerce, mining and agriculture, SMEs, telecommunications and the academia.

Cooperation with business would make collections easier, allowing the agency to meet future targets, Pasi said.

“We need to meet our targets, not just today, but for as long as there is a nation called Zimbabwe.”


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30 comments on “Zimra to beat revenue target, takes aim at informal sector
  1. ZimJim says:

    Who is it they say “Clutches at straws”?…

    Oh yeah.. “A drowning man”…

    “We need to meet our targets, not just today, but for as long as there is a nation called Zimbabwe.”

    Not long then. Glug, glug…

    • apolitical says:

      What a clever journalist.
      “This government relies almost entirely on revenue collection”
      AS DO ALL GOVERNMENTS IN THE WORLD! wow what a breakthrough!

      • Jono Austin says:

        apolitical everyone on this forum knows you are a brown nose so far up the fundamental orifice of zanu they can’t see your feet. Ironical your name is apolitical. The point you cannot or are unwilling to see is that the issue of taxes is not the question. The question is what BENEFIT the citizens enjoy from paying them! There is NOTHING that they get for their tax. It is merely a means to fund obscene salaries, shopping trips, multimillion dollar weddings and other many and assorted perks for the Gang and a ridiculously bloated and inefficient ‘civil’ service. It is used to bludgeon the citizenry into submission through a corrupt and totally zanu partisaned police force, never mind masoja.

        • apolitical says:

          @ Jono Austin
          Onre of us didn’t comprehend the article and unfortunately its you and calling others names wont improve your concentration when you read.
          TAhe article is not about whsat we get its about taxing the informal sector which needs to happen as it does in ,modt countries in the world.
          One the Tax is collected then by your vote you get a say in how it is spent, its called democracy.
          Now do you understand what the issue is in the article, the journalist implies the informal sector should pay tax which is plain stupid!

  2. Andrew Nhau says:

    Why not formalise the informal. I mean introduce an identifier # or what ever you prefer to call it and make it a mandatory that if one is doing business without that identifier their transactions will be taxed at a higher rate. As matter of fact I propose a 10% VAT and you will be surprised how much money ZIMRA will collect as more people will find it bearable to offload that burden of taxes hanging over their heads.

    Lets have Zimbabwean Master Guides readily available in bookshops, and allow Tax Accountants/consultants to deal with private business tax issues instead of ZIMRA staff doing individual and company tax returns. ZIMRA needs to cut down on its numbers, and allow businesses to do self assessments and of course still perform random audits to ensure hapana chitsotsi chinoitwa.

    If the country is serious about raising its taxes, why is it that if one gets a Drivers Licence they pay a once off fee and that’s it, there is everything wrong about this approach. Lets be practical and realize that the roads need to be maintained and more infrastructure to continue being built. Asi please stop stealing from people with the current toll fees being charged on our national highways. Since the introduction of the toll fees, no developments have taken place on our roads and looks like who ever is behind the scam believes it is their right to continue stealing from people, no, it is illegal and morally wrong to continue doing the wrong things. For goodness sake we are talking of a government running a country ladies and gentlemen, its not mahumbwe hoo.

    So to the ZIMRA chief I believe you are an educated man and you have examples of other countries who have done good by planning, budgeting, implementing and monitoring of their countries’ resource in a responsible manner. Stop behaving like monkeys, and no wonder we Africans end up being labelled as uncivilised on matters that are clear and straight forward.

    If the ZIMRA chief is serious and wants to make a change for the good of the country, be bold enough to go after everyone in Zimbabwe in accordance with the laws of the country and ensure everyone including yourself is up to date with their tax debts, charity begins at home

  3. Jono Austin says:

    Unbelievable really. These clowns think that taxing the nation is a good thing. A great accomplishment. When we know that the Government are leeches who give nothing back to the nation. They are like the Mafia shaking down the community. Think about it. Exactly where do you see benefits from your tax. Nothing is free. No free education, medical, Utilities etc. You pay for everything. The roads were from times past and they are potholed to hell. It is quite incredible that these buffoons can prey on a nation as they do. I predict one thing-when the worm finally turns it will be a bloodbath and no mercy will be shown to these scoundrels who have bled the country dry.

    • Jan says:

      yes Jono, these macabre clowns are indeed unbelievable. First they destroy the formal business sector, and hence many Zimbabweans are unemployed. Now they want tax the informal sector to death. One of the reasons the infromal sector is increasing in numbers is due to the fiscal ineptitude of zanupf. Members of my family have been unemployed for ten years and those that still have some form of job have not been paid regularly, now zanupf wants to take the last crumb out of the suffering Zimbabweans mouths.Nhai??

    • zimbo says:

      Agreed – there is not much we receive for our taxes – unless one is on the gravy train then its excellent!!

  4. Joe says:

    Where is the money going that you collect you idiots. Transparency so you say so let’s see wher it’s going. Into the pockets of ministers and commissioners that’s where bloody liars

  5. Zen says:

    Where else do you think the money will come from to fund Bob’s travels, shopping and treatment in Asia? How else to pay for weapons from China? How do you think they pay the salaries of civil servants,party loyalists, the army, militias and police who keep Zanu in power? Dictatorship&corruption cost money you know
    Just pay up and shut up as you always do

  6. Jrr56 says:

    People of Zimbabwe REVOLT and pay no tax’s to these thieves until they pay the tax’s of the ill gotten gains they stole. Mugabe pays tax on $ 4,000 per annum. How then does he host a wedding that conservatively cost $5 million. No Tax paid! No one should pay any tax as they get no services for it. DON’T PAY!!!

    • Gomogranny says:

      Jrr56 if everybody had the courage to do exactly what you say until we have a slimlined government, top class schools instead of a Chinese Military Academy – then we build a country that we can be proud of.

      The taxis are already heavily taxed – BY THE POLICE….where will the police get their bucks once the tax man puts a meter in the taxi? TAXI DRIVERS CAN START THE LONG OVERDUE REVOLUTION! Let them all drive to Harare and block the road to Parliament….NICE.

  7. Chaka says:

    This in addition to the bribe to police. Will see whether taxi business will survive.

  8. John Thomas says:

    The chances of the government reaching its revenue targets are slim. There is no reason to believe any statistics coming from ZIMRA. Why would this arm of the government be honest when all the others are not? Zimra cannot even tell us how much the boss is paid.

    Good luck taxing the informal sector. It is the most dynamic and adaptable part of the economy. If Zimra moves in the action will simply move elsewhere. The transactions are in cash and are unrecorded. There are no records.

    Every vehicle is a potential taxi. There are smart phone aps that can match clients with taxi drivers. To avoid Zimra all a taxi needs to do is take the signage off the vehicle. The police cannot watch every road all the time. Again smart phones can help. It would not be difficult to arrange an app to keep track of road blocks real time.

    • apolitical says:

      @ little John Thomas.
      Understanding is hard isn’t it.
      Tax evasion is a problem world wide only an idiot doesn’t deal with it.
      There needs to be a means test – in other words how do nyou pay your bills how to you drive a car, pay rent? Then where does the money come from and have you proof of tax paid or a tax clearance certificate.
      Tax evasion is an international crime.

      • John Thomas says:

        Do you pay your taxes Apo? You being a ZANU man I am sure you don’t.

      • John Thomas says:

        In fact how much are you paid for your contributions her? Is this money declared on your tax return?

      • Jrr56 says:

        Why is it only the corrupt idiots that want the poor to pay tax and let the politically corrupt get off free. Must be the same fool that wants the press to be government controlled. Sad that these idiots still walk on our streets.

  9. Doris says:

    And how much tax do the scoundrels who “earn” indecent salaries pay? You can rest assured that not one cent is handed over.

    • zimbo says:

      yup – that is what is so frustrating. Just what do they contribute not only to the fiscus but in thier everyday activities!!

    • apolitical says:

      @Doris You don’t let people off with tax because you think others on high salaries don’t pay, you claim all the tax. Understand now!

      • Jrr56 says:

        No go after those that have the obscene salaries, you do not go after those that have nothing. Zimbabweans Pay the same tax Mugabe pays – Nothing – Revolt!!!!!

  10. munzwa says:

    Reached your”target” only because you garnisheed over $200 million last week to pay the civil service!!!!!what about next month??Is this garnisheed money true tax or another Gono trick to clean out the FCA accounts???

  11. Petal says:

    ““We need to meet our targets, not just today, but for as long as there is a nation called Zimbabwe.” in other words bleed from those that do not have to pay for the greedy at the top how much taxes are they paying Mr. Pasi icho!

  12. Petal says:

    How taxes are the greedy at the top paying who are jet setting over the world Mr Pasi???

  13. Petal says:

    At ZimJim true GLUG GLUG GLUG!!!!

  14. Tongoona says:

    This is an admission by government that Zimbabwe is now a failed scrounging state. It is also an indication that government has failed to attract FDI the only way to create employment. No workers no PAYE. More workers more PAYE. The informal sector is the last bus stop for the youth to survive the harsh economic climate. The citizenry wants jobs but government cannot provide employment because of negative economic policies. Income in the informal is very unpredictable. Ipai vanhu mabasa.

  15. Owen says:

    Tax the taxis?? I thought ZRP was already doing that at the road blocks? Hey Mr Pasi: will ZRP bribes be tax deductible? will ZRP pay taxes on bribes taken?
    By the way, Mr Pasi – you never revealed your salary. or how much tax you pay yourself.

  16. BLESSING says:


  17. Petal says:


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