The Zimbabwe Revenue Authority (ZIMRA) is engaging industry on a voluntary tax compliance system to broaden revenue collection on behalf of Treasury.

Challenges facing industry have resulted in limited compliance to the tax systems with the ZIMRA acting commissioner general saying the institution is now coming up with a voluntary tax compliance system which will among other factors enable firms to pay taxes on an agreed basis.

While industry is committed to pay tax obligations to the government problems such as limited consumer demand, high borrowing costs, unaffordable utility rates, cash-flows problems among others have resulted in several companies failing to meet set ZIMRA deadlines with indications the voluntary compliance system will provide a relief to firms, says Confederation of Zimbabwe Industries president Mr Busisa Moyo.

Despite subdued operational conditions for industry, ZIMRA is this year pinning hopes for increased revenue inflows from the value added tax, custom duties, mining royalties, pay as you earn among others.