THE push by the Zimbabwe Revenue Authority (Zimra) to register 50 000 new taxpayers this year could mark a decisive turning point in the country’s fiscal trajectory — if it is pursued fairly, consistently and without fear or favour.
With Treasury targeting revenues of ZiG288 billion against planned expenditures of ZiG290,9 billion in the 2026 National Budget, the margin for error is razor-thin. A slight revenue shortfall could easily widen the deficit, forcing either borrowing, arrears accumulation or disruptive expenditure cuts. None of those options is attractive in an already fragile economy.
For years, financing government operations has rested on a shrinking pool of compliant businesses.
They religiously gave Caesar what belonged to Caesar, even when their own fortunes waned. The response, however, has too often been the introduction of new taxes and levies to plug fiscal gaps — effectively piling more pressure on those already inside the tax net.
Meanwhile, tax authorities have struggled to penetrate the informal sector, much of which operates on a cash basis and increasingly in United States dollars. With an estimated 76,1% of the economy now informal, a vast constituency remains outside the tax system. That imbalance is neither fair nor sustainable.
In that context, remarks by Zimra Technical Services head Martin Chinanayi about registering 50 000 new taxpayers are a step in the right direction. But registration alone is not reform. What is required is a coherent strategy to create incentives for formalisation — simplified tax regimes for small enterprises, access to credit facilities, legal protections and predictable regulatory frameworks that make compliance worthwhile.
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Zimbabwe’s huge external debt burden continues to block access to budgetary support from multilateral and bilateral financial institutions. Institutions such as the International Monetary Fund, World Bank and African Development Bank have consistently urged Harare to strengthen domestic revenue mobilisation, particularly given limited access to concessional financing.
Compounding this, US President Donald Trump’s “America First” posture — and broader donor fatigue globally — has tightened development assistance flows to social sectors. Whether through geopolitics or fiscal retrenchment abroad, the message is clear: Zimbabwe must increasingly finance itself.
In that environment, expanding the tax base is not optional; it is unavoidable.
However, enforcement must be intelligent. While Zimra must be firm with delinquent firms, it must also nurture businesses so they retain the capacity to pay taxes tomorrow. Garnishing bank accounts may solve revenue targets in the short term, but in the long run, it risks suffocating firms and pushing them closer to the corporate graveyard.
If Zimra succeeds in registering 50 000 new taxpayers and meaningfully integrating segments of the informal economy into the formal system, the benefits could be transformative.
Pressure on compliant businesses would ease. Public finances would stabilise. The revenue model would become broader, fairer and more resilient.
The alternative — perpetual tax hikes on a narrow base — is neither economically viable nor politically sustainable.
Broadening the tax base should never be synonymous with squeezing the already compliant. It is about capturing untaxed economic activity and closing loopholes.
Expanding the tax base is not merely a fiscal reform. It is a necessary step towards restoring balance, credibility and long-term economic stability.