Zimbabwe is battling to attract investment, formalise its economy, and encourage citizens to start and sustain businesses. In such an environment, government policy should be supportive, predictable, and growth-oriented. Unfortunately, Public Notice 69 of 2025, issued by the Zimbabwe Revenue Authority (Zimra), points in the opposite direction.
The notice, which governs the issuance of the 2026 Tax Clearance Certificate (ITF263), introduces a regime in which tax clearance is valid for only one month and can be suspended immediately upon any lapse in compliance. While tax compliance is essential for national development, the structure of this policy punishes businesses rather than partnering with them.
A fragile economy needs support, not pressure. Zimbabwean businesses—particularly small and medium enterprises—operate under severe strain, including high operating costs, unreliable electricity supply, currency instability, limited access to finance, and low consumer demand. These challenges are well documented.
Against this backdrop, turning tax clearance into a monthly hurdle means that a single administrative delay—a late return, a temporary cash-flow problem, or a technical issue with fiscalisation systems—can instantly lock a business out of:
- Government tenders
- Major corporate contracts
- Cross-border trade opportunities
This is not tax reform; it is economic self-sabotage.
Compliance by Fear Does Not Build a Tax Culture
The tone of the notice is telling. It emphasises penalties, suspension, and prosecution. While enforcement has its place, compliance built on fear is neither sustainable nor developmental.
Globally, successful tax authorities focus on:
- Businessman locks horns with top judges
- Sunsleey Chamunorwa: Of journalism and reggae’s level vibes
- Renowned journalist Sunsleey Chamunorwa dies
- Student teachers want corporal punishment back
Keep Reading
- Encouraging voluntary compliance
- Supporting businesses to remain formal
- Using incentives before sanctions
Zimbabwe, however, risks driving businesses back into informality—the very opposite of what the tax system is intended to achieve.
Discouraging Start-Ups and Recovering Enterprises
The handling of NIL (zero) returns raises further concern. Start-ups, seasonal businesses, and enterprises emerging from difficult periods are instructed not to apply for tax clearance unless they physically approach ZIMRA offices. This adds bureaucracy, uncertainty, and cost at a time when the government should be lowering barriers to entry.
If starting a business immediately exposes entrepreneurs to compliance traps rather than support mechanisms, the rational choice for many will be to remain informal or invest elsewhere.
A wrong signal to investors
Tax policy sends a powerful message to investors. This policy communicates that:
- Compliance risk is high
- Administrative flexibility is low
- The business environment is unforgiving
At a time when Zimbabwe should be competing regionally for capital, skills, and innovation, such signals are deeply damaging.
This is not an argument against paying tax. On the contrary, tax revenue is vital for public services and national development. However, taxation must be fair, predictable, and aligned with economic realities.
Government and ZIMRA should urgently reconsider this approach by:
- Restoring longer validity periods for tax clearance (six to twelve months)
- Introducing reasonable grace periods for minor non-compliance
- Distinguishing deliberate tax evasion from genuine business challenges
- Consulting meaningfully with business organisations before enforcing such measures
To the ZIMRA Commissioner General, Regina Chinamasa: you cannot punish your way to economic growth. You cannot threaten businesses into prosperity. And you cannot attract investment while treating the enterprise as a liability rather than a partner.
Zimbabwe needs tax policies that build confidence, encourage compliance, and support growth—not policies that choke the very businesses the economy depends on.
