Private sector, experts hail Zimra's TaRMS tax regime

Private sector players and financial experts have praised Zimbabwe's Tax and Revenue Management System (TaRMS) for significantly improving taxpayer accessibility and compliance, particularly among small and medium enterprises (SMEs).

Speaking at the 9th Annual Tax Conference held in Victoria Falls, government officials and industry leaders highlighted how TaRMS has broadened the tax base while simplifying registration and filing processes for both new and existing businesses. This advancement is seen as a key step in Zimbabwe's ongoing shift toward a digital economy.

"TaRMS has transformed the taxpayer journey," said Patricia Chikosa, chief executive of the FiscalEase Institute and a private sector representative. "Previously, onboarding was manual, cumbersome, and time-consuming, especially for micro and small enterprises. Now, firms can register with minimal fuss, submit returns online, and track their compliance in real-time."

Zimbabwe Revenue Authority (Zimra) Commissioner for Domestic Taxes, Misheck Govha, echoed this sentiment, pointing to the regional and international interest generated by Zimbabwe's system. "Since its rollout in 2023 under the National Development Strategy 1, delegations from Uganda, Eswatini, Botswana, and even Malta have evaluated our framework. Recently, Rwanda visited, and Zimbabwe is now regarded as a model to emulate," he said.

Small business owner and entrepreneur Brian Zvarava praised TaRMS for removing traditional barriers to compliance. "Compliance used to be intimidating-long forms, queues, delays. TaRMS removed most of that. I registered my bakery within days online and began filing digitally. I am now fully compliant, which gives me confidence and access to future opportunities," he said.

Conference attendees also learned that TaRMS has enhanced integration across government agencies, linking Zimra with the Civil Registry, Company Registrar, and Deeds Office, among others. This integration facilitates secure data flows and aligns with Zimbabwe's 2030 Vision to achieve upper-middle-income status through digital transformation.

Economist Dr. Samukeliso Ncube of the Business Reform Forum emphasized the system's role in expanding formal tax contributions. "There are two routes to boosting revenue: hike rates or drive compliance. TaRMS chose the latter, turning informal operators into formal contributors to the treasury," she noted. Dr. Ncube also highlighted the transparency of the system, saying it builds taxpayer trust by making obligations predictable rather than punitive.

The three-day forum also featured sessions on capacity building, policy design, tax compliance, new tax laws, and procedural efficiency. Participants applauded TaRMS for delivering tangible improvements at the operational level for businesses.

While Zimbabwe's tax reforms mark a major advancement, the country's overall ease of doing business ranking still lags behind global peers. However, experts at the conference argued that TaRMS addresses a crucial component-"Paying Taxes"-where Zimbabwe ranked 146th in the 2020 World Bank report.

"With more firms joining the tax bracket and improved compliance, this area stands to see continued progress, potentially lifting Zimbabwe's overall business climate rankings in the future," conference speakers said.

Participants called for further reforms, including linking TaRMS to the planned One-Stop-Shop for import and export documentation, simplifying building permit procedures, and advancing digital identity verification to eliminate manual bottlenecks.

The conference underscored the vital role of technology and cooperation between government and the private sector in strengthening Zimbabwe's economic future.