Zimra signals u-turn on monthly tax clearances after business pushback

The Zimbabwe Revenue Authority (ZIMRA) has signalled a partial retreat from its controversial plan to require monthly tax clearance certificates, following pushback from the business community.

In Public Notice 69 of 2025, ZIMRA had initially stated that tax clearance certificates (ITF263) for the 2026 tax period "will only be valid for a month for all taxpayers," warning that any lapse in compliance would lead to suspension of the subsequent month's clearance. The proposal sparked strong objections from industry, which warned that monthly renewals would increase administrative costs and strain business operations in an already challenging economic environment.

In a December 19 letter responding to concerns from the Confederation of Zimbabwe Industries (CZI), ZIMRA Commissioner for Domestic Taxes Misheck Govha indicated that the authority is now reconsidering the rigid monthly framework.

"In light of the concerns raised, ZIMRA remains committed to ensuring that compliance measures are practical, efficient, and aligned with broader economic objectives," Govha wrote. He outlined a "phased, transitional framework" that would stagger implementation based on taxpayer size and scale. Under the revised approach, large clients could receive tax clearance certificates valid for six months, while medium and small clients, including tender participants, would receive certificates valid for three months.

The move represents a notable softening from ZIMRA's original position, which applied monthly tax clearance uniformly to all taxpayers. However, the authority emphasised that the underlying policy remains unchanged. Taxpayers submitting NIL returns would still need to seek specific authorisation from ZIMRA to obtain clearance certificates.

The transitional framework is intended to provide "flexibility and operational stability" while the authority continues consultations and system stabilisation efforts.

Despite the adjustment, business groups say the revised timelines do not go far enough. Industry representatives argue that even three-month clearances impose unnecessary administrative burdens and create uncertainty, particularly for firms requiring certificates to access tenders, banking services, or statutory approvals.

ZIMRA reiterated its commitment to stakeholder engagement, stressing that "our shared objective remains the establishment of a framework that supports voluntary compliance, business continuity, and effective revenue mobilisation."