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Zimbabwe gives tax system a digital overhaul

By , Journalist
Zimbabwe , 13 Jan 2020

Zimbabwe gives tax system a digital overhaul

Zimbabwe plans to leverage a US$10-million grant from the African Development Bank (AfDB) to revamp ICT systems and digitalise tax payment systems within the Zimbabwe Revenue Authority (Zimra) in a bid to boost tax revenue collection.

This follows the recent signing of a Protocol of Agreement for the Tax Accountability and Enhancement Project between the financial institution and Zimbabwe's Minister of Finance Mthuli Ncube.

Reduced foreign direct investment has forced the Southern African country to fund state operations via tax and other statutory revenue collections, including Intermediated Money Transfer Tax on all mobile money and electronic transactions.

Damoni Kitabire, Zimbabwe country representative for AfDB said last week that the new funding availed by the regional financier will "enhance information technology management capacities for tax management and administration" as well as "improve operational efficiency in collection of domestic taxes and service delivery".

Faith Mazani, Commissioner General of Zimra, said the grant will support Zimra in "building ICT Systems capacity for tax administration, revenue mobilisation, facilitation of trade and training of ICT staff."

Zimra secured over US$8-million of the grant, with the balance steered towards capacitation of the Auditor General's Office and the country's parliament, which provide key oversight functions.

"Zimra relies heavily on Information and Communications technology and automated processes to effectively and efficiently deliver its mandate of revenue collection. This funding has come at a time our country is facing foreign currency challenges," added Mazani.

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