The Zimbabwe Taxpayer’s Platform (ZITAP), Zimbabwe’s leading tax justice network, recently engaged operators in the Micro-Small and Medium Enterprise (MSME) sector on the ongoing taxation blitz. There is emerging consensus that the Zimbabwe Revenue Authority’s (ZIMRA) online tax registration and payment platform and requirements are too rigid, cumbersome, and technocratic.
The TaRMs platform is only website-based and very technocratic, occupying a disproportionate time as small business people try to learn and navigate the system. Tax filing and paying become a pain, and yet tax paying is supposed to be seamless and welcoming. South Africa and other countries use mobile applications that are very reliable and allow people to file their taxes on the go. The SARS mobile e-filing platform of South Africa encourages tax compliance.
The second challenge is on requirements. For one to register for Value Added Tax (VAT) in TaRMS, they need a formal lease agreement or title deed. Which MSME has these documents? ZIMRA seems to be out of touch with reality. The MSME sector drives the economy without title deeds or lease agreements. They often sign a one-page lease whose primary condition is paying rentals on time.
The last bit is about civic education. We note that ZIMRA has unleashed its officers on the MSME sector, threatening legal action and hefty fines without exercising the primary civic duty to inform. ZIMRA is a government, a people’s agency that must work for the people. We encourage ZIMRA to embark on a massive civic education campaign to conscientize small businesses on the need and how to register for taxation. That is how nations grow – not through threats and punishment.
Other state-owned institutions like the Zimbabwe Roads Authority (ZINARA) or the Zimbabwe Elections Commission (ZEC) make it easy for their publics to know by investing in public education. Since the Government has embarked on tax reforms on its ease of doing business matrix, ZIMRA reforms are crucial.
ZITAP respects the legal and constitutional obligation of citizens to pay tax, but the process must not be hard and painful. We hope ZIMRA will listen and act!