By Tendai Matunhu
Government has announced that the drive to improve revenue collections is important in reducing the budget deficit, which over the years was largely financed through unsustainable debt instruments.
This was said by Deputy Minister of Finance and Economic Development Honourable Clemence Chiduwa, at The Annual Tax Review Conference at Rainbow Towers in Harare, today.
Honourable Chidawu commended companies and individuals who have developed interest in understanding the tax system.
“As government, we are delighted to see that our colleagues in the private sector are developing a keen interest in understanding the tax system, which unfortunately has been tagged as parasitic since it takes resources away from you the taxpayer. Despite this unfortunate tag, taxation remains one of the necessary evils that we all have to live with.
“This event has been preceded by the reform agenda that the Second Republic has been implementing since the commencement of its tenure. Notable reforms have targeted the tax system with a view to improving revenue collections and supporting the growth of industry. To foster economic growth and development, Government requires a sustainable source of funding for social programmes and public investments.
“Programmes providing health, education, infrastructure and other services are important to achieve the common goal of a prosperous, functional and orderly society. But they require governments to raise revenues for funding,” he said.
Deputy Minister Chidawu went on to say that Government, through his Ministry together with ZIMRA, is working hard to review areas that tax payers feel may not be advancing the country’s interests.
“We are also working with ZIMRA to reduce revenue leakages through smuggling of imported goods at our border post. We have activated our surveillance systems, and I am sure many of you have been reading what has been happening to those who have tried to evade taxes by manipulating the system.
“With all of us cooperating, we hope that these strategies, and many others, will help us achieve the targets that our government has set under the Transitional Stabilisation Programme, and the target set by His Excellence, President Emmerson Mnangagwa under Vision 2030, when we expect our country to move into the Upper Middle Income bracket,” he said.
