Zimra's new system sees number of tax payers double

Zimbabwe's new Tax and Revenue Management System (TaRMS) has more than doubled taxpayer registrations within a year, marking a major breakthrough in the country's tax administration.

Figures presented by the Commissioner of Domestic Taxes, Misheck Govha, at the system's launch last week showed taxpayer registrations rose from 30 689 in 2023 to 66 210 in 2024 — a 115,7 percent increase. In the first half of 2025 alone, TaRMS captured an additional 45 726 registrations.

Govha said the digital platform has restored efficiency and integrity to an area long crippled by manual processes and fraud. "TaRMS has not only modernised our tax administration but has restored integrity and efficiency in ways the old system could not," he said.

Economists welcomed the reforms, highlighting TaRMS' potential to draw activity from the informal economy, which makes up as much as 70 percent of Zimbabwe's economic activity. "Digitalisation lowers barriers to compliance and can gradually bring more businesses into the tax net," said economist Gladys Shumbambiri-Mutsopotsi.

Dr Prosper Chitambara added that a wider tax base boosts government revenue, enabling greater investment in infrastructure, health, and education while reducing reliance on debt.

Beyond registrations, TaRMS has transformed tax administration through integration with the Registrar of Companies, Civil Registry, and banks to validate taxpayer details, cutting fraud. It automates debt management, compliance, audits, and appeals while allowing taxpayers to file disclosures and objections electronically. QR-coded tax clearances now allow instant verification, ending abuse of fraudulent certificates.

The new system replaces the old paper-based and error-prone SAP platform, which was riddled with duplicate registrations, unallocated payments, and unstable e-filing. "Cases are now visible across the authority with proper permissions, which not only improves transparency but strengthens trust in our processes," Govha said.

While return submissions still lag behind the global 80 percent on-time target, authorities say TaRMS provides the digital backbone to expand the tax base, improve compliance, and reduce overreliance on a narrow pool of already compliant businesses.

"The contrast is stark," Govha noted. "TaRMS has redefined the taxpayer experience by making compliance simpler, transparent, and verifiable."