News / National
Zimra targets US$7.155 billion in 2025 revenue collection drive
19 hrs ago | Views
The Zimbabwe Revenue Authority (ZIMRA) has set an ambitious target to collect US$7.155 billion in tax revenue for 2025, reflecting a 17 percent increase from the 2024 target.
ZIMRA, the government's revenue collection agency, plays a crucial role in assessing and collecting revenue, facilitating trade and travel, and enforcing tax compliance. In the 2025 National Budget, Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube projected total revenue collections at ZiG270.3 billion, equivalent to approximately US$7.5 billion, with projected national expenditure reaching ZiG276.4 billion.
To meet this revenue goal, Minister Ncube introduced several new tax categories aimed at broadening the tax base. These include reviewing the Special Economic Zone (SEZ) regimes, imposing a 10 percent withholding tax on sports betting winnings, introducing a 0.5 percent fast-food tax, and reinstating duties on selected medical products.
ZIMRA Board Chairman Mr. Antony Mandiwanza reported that in the second half of 2024, the authority collected gross annual tax revenue of ZiG110.50 billion, surpassing the set target of ZiG105.73 billion by 4.51 percent. He attributed this success to enhanced tax collection strategies and increased compliance.
"Achieving this target will require effective policy implementation, increased enforcement, and improved digital platforms," said Mandiwanza. He emphasized that while external factors such as global economic trends pose risks, strategic reforms and technological advancements provide a solid foundation for meeting revenue targets.
The authority's digitalization initiatives have led to significant improvements in tax administration. Six major projects were introduced, streamlining internal operations and enhancing tax collection efficiency. This shift towards automation has also improved taxpayer experiences, making services more accessible and reducing processing times.
ZIMRA's total net revenue for the second half of 2024 reached ZiG69.22 billion, exceeding the target of ZiG64.60 billion by 7.15 percent. The stabilization of the exchange rate contributed to a more predictable business environment, bolstering tax collections.
New policy measures, including streamlining tax exemptions and broadening the VAT base, resulted in an 88 percent increase in VAT on local sales. Additionally, the onboarding of VAT taxpayers onto the Fiscalisation Data Management System (FDMS) improved real-time tax data sharing.
The growth of digital money transfer platforms further boosted revenue, with the Intermediated Money Transfer Tax (IMTT) performing exceptionally well. Meanwhile, efforts to combat transit fraud were successful in improving regulatory compliance.
Despite a shortfall in Excise Duty revenue, the introduction of fiscalisation for fuel stations is expected to enhance compliance and revenue collection in the coming years.
ZIMRA is actively addressing outstanding tax debts owed by private entities and public institutions, including state enterprises and parastatals. Mr. Mandiwanza noted that 80 percent of the outstanding debt stemmed from new assessments following audits, demonstrating ZIMRA's proactive approach to identifying and addressing discrepancies. The remaining 20 percent represents uncollected obligations, which the authority is working to recover through enhanced enforcement measures.
Refunds decreased from 3.69 percent in the first half of 2024 to 2.81 percent in the second half due to policy adjustments shifting most products from zero-rated status to standard VAT rates or exemptions.
ZIMRA has also improved border management and trade facilitation through system upgrades and process enhancements. The expansion of the Single Window Project has streamlined operations at border points, improving trade flows.
The authority has also increased the use of drone surveillance to enhance border security and improve monitoring of goods movement. Other technological advancements, such as the Tax and Revenue Management System (TaRMS) and the Automated System for Customs Data (ASYCUDA) upgrade, have strengthened domestic revenue management.
As part of its commitment to service quality, ZIMRA has embarked on an ISO 9001:2015 certification journey, aiming to standardize processes and enhance stakeholder engagement. Additionally, infrastructure projects, including staff accommodation at Chirundu and Maitengwe border posts, are progressing and expected to be completed in 2025.
ZIMRA remains committed to innovation, enhanced enforcement, and digital transformation as key strategies to achieve its 2025 revenue targets and strengthen Zimbabwe's fiscal position.
ZIMRA, the government's revenue collection agency, plays a crucial role in assessing and collecting revenue, facilitating trade and travel, and enforcing tax compliance. In the 2025 National Budget, Finance, Economic Development, and Investment Promotion Minister Professor Mthuli Ncube projected total revenue collections at ZiG270.3 billion, equivalent to approximately US$7.5 billion, with projected national expenditure reaching ZiG276.4 billion.
To meet this revenue goal, Minister Ncube introduced several new tax categories aimed at broadening the tax base. These include reviewing the Special Economic Zone (SEZ) regimes, imposing a 10 percent withholding tax on sports betting winnings, introducing a 0.5 percent fast-food tax, and reinstating duties on selected medical products.
ZIMRA Board Chairman Mr. Antony Mandiwanza reported that in the second half of 2024, the authority collected gross annual tax revenue of ZiG110.50 billion, surpassing the set target of ZiG105.73 billion by 4.51 percent. He attributed this success to enhanced tax collection strategies and increased compliance.
"Achieving this target will require effective policy implementation, increased enforcement, and improved digital platforms," said Mandiwanza. He emphasized that while external factors such as global economic trends pose risks, strategic reforms and technological advancements provide a solid foundation for meeting revenue targets.
The authority's digitalization initiatives have led to significant improvements in tax administration. Six major projects were introduced, streamlining internal operations and enhancing tax collection efficiency. This shift towards automation has also improved taxpayer experiences, making services more accessible and reducing processing times.
ZIMRA's total net revenue for the second half of 2024 reached ZiG69.22 billion, exceeding the target of ZiG64.60 billion by 7.15 percent. The stabilization of the exchange rate contributed to a more predictable business environment, bolstering tax collections.
New policy measures, including streamlining tax exemptions and broadening the VAT base, resulted in an 88 percent increase in VAT on local sales. Additionally, the onboarding of VAT taxpayers onto the Fiscalisation Data Management System (FDMS) improved real-time tax data sharing.
The growth of digital money transfer platforms further boosted revenue, with the Intermediated Money Transfer Tax (IMTT) performing exceptionally well. Meanwhile, efforts to combat transit fraud were successful in improving regulatory compliance.
Despite a shortfall in Excise Duty revenue, the introduction of fiscalisation for fuel stations is expected to enhance compliance and revenue collection in the coming years.
ZIMRA is actively addressing outstanding tax debts owed by private entities and public institutions, including state enterprises and parastatals. Mr. Mandiwanza noted that 80 percent of the outstanding debt stemmed from new assessments following audits, demonstrating ZIMRA's proactive approach to identifying and addressing discrepancies. The remaining 20 percent represents uncollected obligations, which the authority is working to recover through enhanced enforcement measures.
Refunds decreased from 3.69 percent in the first half of 2024 to 2.81 percent in the second half due to policy adjustments shifting most products from zero-rated status to standard VAT rates or exemptions.
ZIMRA has also improved border management and trade facilitation through system upgrades and process enhancements. The expansion of the Single Window Project has streamlined operations at border points, improving trade flows.
The authority has also increased the use of drone surveillance to enhance border security and improve monitoring of goods movement. Other technological advancements, such as the Tax and Revenue Management System (TaRMS) and the Automated System for Customs Data (ASYCUDA) upgrade, have strengthened domestic revenue management.
As part of its commitment to service quality, ZIMRA has embarked on an ISO 9001:2015 certification journey, aiming to standardize processes and enhance stakeholder engagement. Additionally, infrastructure projects, including staff accommodation at Chirundu and Maitengwe border posts, are progressing and expected to be completed in 2025.
ZIMRA remains committed to innovation, enhanced enforcement, and digital transformation as key strategies to achieve its 2025 revenue targets and strengthen Zimbabwe's fiscal position.
Source - the herald
