Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has challenged the Zimbabwe Revenue Authority (ZIMRA) to significantly broaden the tax base and improve revenue collection as Government targets a 22 percent tax-to-GDP ratio by 2030.
Speaking at ZIMRA’s 25th anniversary celebrations in Harare yesterday, Ncube said stronger domestic resource mobilisation was critical to Zimbabwe’s economic sovereignty and ability to finance development amid limited access to affordable external financing.
“As Zimbabwe advances towards Vision 2030, Government expects ZIMRA to broaden the tax base, strengthen compliance, reduce revenue leakages and make compliance simpler, fairer and more predictable.
Our ambition is to raise the tax-to-GDP ratio to 22 percent by 2030, consistent with our national development objectives and regional convergence ambitions. That is the standard against which the next phase of ZIMRA’s journey must be measured,”Minister Ncube said
Ncube said the target was particularly important as Zimbabwe’s economy continued to expand, with the country now having a gross domestic product of more than US$66 billion.
“Today, Zimbabwe is a US$66 billion-plus economy and continues to grow. As our economy expands, ZIMRA must rise with it.
A growing economy must produce a growing revenue base, because a stronger revenue base gives Government greater capacity to finance national priorities and development,”he added
He said domestic resource mobilisation had become increasingly important as developing countries faced constrained access to international financing, higher borrowing costs and declining development assistance.
“In this environment, domestic resource mobilisation is not simply a revenue administration objective; it is an essential pillar of economic sovereignty and national resilience,” Professor Ncube said.
He urged ZIMRA to ensure that the tax base grows alongside economic activity and that businesses and individuals contribute fairly to national development.
“As the economy expands, new businesses emerge, investment increases and economic activity becomes more sophisticated, the Authority must ensure that the tax base expands alongside the economy and that every taxpayer contributes fairly and lawfully to the financing of national development,” he said.
Ncube also called for stronger cooperation between ZIMRA, Government departments and security agencies to combat smuggling, fraud, corruption, illicit financial flows and other economic crimes.
“The nature of smuggling, corruption, illicit financial flows and other forms of economic crime is becoming increasingly sophisticated. Our response must, therefore, be equally coordinated, intelligence-led and technology-enabled,” he noted .
Looking ahead, Minister Ncube said ZIMRA must modernise its systems and improve taxpayer services to keep pace with an increasingly digital economy.
“ZIMRA must therefore remain equal to the economy it serves, modern in its systems, intelligent in its administration, efficient at our borders and responsive to the taxpayers who sustain our nation,” he said.
ZIMRA was established in 2001 to administer tax and Customs laws, mobilise revenue and facilitate legitimate trade and travel. Ncube said its next 25 years would be judged by its ability to strengthen fiscal capacity while maintaining public confidence.
