News / National
Tax evasion bleeds Zimbabwe economy
5 hrs ago | Views
Humanitarian organisation ActionAid Zimbabwe has expressed deep concern over the rampant levels of tax evasion in the country, warning that this undermines the pool of funds available for national development and public services.
Transparency International Zimbabwe has previously estimated that Zimbabwe loses up to US$2 billion annually through financial leakages and tax evasion, with corruption and bribery - especially involving customs officials at border posts - being major drivers.
Speaking at the sidelines of the recent national dialogue on financing for development, outgoing ActionAid Zimbabwe country director Joy Mabenge highlighted the detrimental impact of tax evasion on government revenue collection and public spending.
"This impacts what the government can collect and what they can allocate for the public good," Mabenge said. "It is not only about individuals being willing to pay tax or do the right thing. The government itself must implement measures to minimise leakages within the tax system."
He also raised concerns over complicity by some government departments and officials in facilitating tax evasion, a factor that exacerbates revenue losses.
"There are high net worth individuals who splash money around, and we wonder whether they even pay tax to the government," Mabenge said. "If all that money were appropriately taxed, and the public knew that revenues were transparently collected and channelled into public services, it would be a positive step."
Data from the Zimbabwe Revenue Authority (ZIMRA) shows ongoing efforts to combat tax evasion, with investigations into 142 cases completed in 2021, resulting in the recovery of over Z$750,000 and US$8 million.
However, Mabenge emphasised the need for stronger institutional frameworks and enhanced accountability to plug persistent revenue leakages.
As Zimbabwe grapples with fiscal challenges, experts argue that curbing tax evasion and improving transparency are crucial steps towards bolstering the country's development financing and ensuring equitable service delivery.
Transparency International Zimbabwe has previously estimated that Zimbabwe loses up to US$2 billion annually through financial leakages and tax evasion, with corruption and bribery - especially involving customs officials at border posts - being major drivers.
Speaking at the sidelines of the recent national dialogue on financing for development, outgoing ActionAid Zimbabwe country director Joy Mabenge highlighted the detrimental impact of tax evasion on government revenue collection and public spending.
"This impacts what the government can collect and what they can allocate for the public good," Mabenge said. "It is not only about individuals being willing to pay tax or do the right thing. The government itself must implement measures to minimise leakages within the tax system."
He also raised concerns over complicity by some government departments and officials in facilitating tax evasion, a factor that exacerbates revenue losses.
"There are high net worth individuals who splash money around, and we wonder whether they even pay tax to the government," Mabenge said. "If all that money were appropriately taxed, and the public knew that revenues were transparently collected and channelled into public services, it would be a positive step."
Data from the Zimbabwe Revenue Authority (ZIMRA) shows ongoing efforts to combat tax evasion, with investigations into 142 cases completed in 2021, resulting in the recovery of over Z$750,000 and US$8 million.
However, Mabenge emphasised the need for stronger institutional frameworks and enhanced accountability to plug persistent revenue leakages.
As Zimbabwe grapples with fiscal challenges, experts argue that curbing tax evasion and improving transparency are crucial steps towards bolstering the country's development financing and ensuring equitable service delivery.
Source - NewsDay
