Economic experts advise that the upturn resulting from improved revenue collection can be enhanced by embarking on several strategies to tap on the unbanked tax payers.
With statistics showing employment opportunities heavily tipped towards the informal sector, the industry presents an opportunity for the Zimbabwe Revenue Authority to build on tax remittance from this sector to further boost revenue performance.
However to achieve this, a number of strategies to improve tax remittance by this sector are needed to ensure the sustainability of the country’s tax system according to economic analyst Mr Luxon Zembe.
While prevailing challenges to industrial growth mainly due to reduced capacity utilization in industry, liquidity constraints among other challenges have impacted on the ability of companies to meet their tax obligations, authorities can focus on providing incentives to stimulate productivity.
Recommendations are also proffered on improving the approach to tax collection on both the formal and informal industries notes tax expert Mr Tendai Mavima.
Industry leaders also recommend the creation of an SMEs body that will effectively promote issues of tax compliance adds economic analyst Mr Zembe.
The effective implementation and monitoring of these strategies will be pivotal to further enhance ZIMRA’s operational efficiency and effectiveness while translating to a robust revenue collection mechanism.