The Zimbabwe Revenue Authority (ZIMRA) has been missing revenue targets for the greater part of last year though current figures paint a positive picture as small and medium enterprises (SMEs) are complying with the tax payer.
Despite 13 000 SMEs having registered for the formalisation process, ZIMRA is facing a lot of challenges in the collection of revenue.
In a bid to boost the country’s revenue, government has put measures to ensure maximum collection of income from all businesses operating in the country as stipulated under the laws of the country.
Despite being supported by an act of parliament, local firms are reeling under serious funding issues hence their failure to remit what they owe to the tax collector leading to litigation on tax evasion.
The operating environment has been challenging which has seen SMEs evading taxes at the same time refusing to be registered under the formalisation programme.
While government appreciates economic developments, paying taxes is everyone’s mandate for the country to meet its desired objectives regarding fiscal policies.
The fiscalisation process has not been embraced fully with the business community raising concern over the high cost of devices which is also working against government thrust.
SMEs have also been heavily blamed for failure to comply with the laws of the land as they feel they are not a priority.
While SMEs constitute a number of those that are evading taxes, corporates are also emerging as chief culprits which has seen most organisations been dragged before the courts in a bid to recover US$2.8 billion owed to the revenue collector.