The Zimbabwe Revenue Authority (ZIMRA) has demonstrated remarkable progress in revenue generation during the second half of 2024, surpassing its revenue target by 7.15%. The total net revenue reached ZWG 69.22 billion, bolstered by effective tax strategies, the stabilization of the exchange rate, and new policies enhancing compliance, particularly in Value Added Tax (VAT) collections. Notably, the introduction of the Fiscalisation Data Management System (FDMS) played a significant role in improving real-time data sharing with taxpayers, while efforts to combat transit fraud contributed to greater adherence to regulations.

As ZIMRA looks ahead to 2025, the outlook remains optimistic with a revenue target set at US$7.155 billion, aiming for a 17% increase from the previous year. This ambitious goal is supported by ongoing digitalization initiatives, administrative efficiencies, and strategic reforms to broaden the tax base and reduce evasion. ZIMRA also emphasizes the importance of stakeholder engagement, underlining its commitment to enhancing quality service delivery and fostering a collaborative environment with taxpayers for the continued economic growth of Zimbabwe.

Breakdown of Overall Performance

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By Chenayi Mack-Maponga

The Zimbabwe Revenue Authority (ZIMRA) Culture Change Programme has made significant strides, with over two hundred ZIMRA employees gathering at Manna Resorts in Harare on March 25, 2025, for the initiative.

The programme feeds into broader change management efforts and aims to reorganize, restructure, and reinvigorate the ZIMRA culture, brand, and operations.

In her opening remarks, the Commissioner General of ZIMRA, Ms. Regina Chinamasa, stated, "The Culture Change project seeks to revive the ZIMRA brand and position it as an integral part of the organization’s strategic thrust. We are mandated by the government to mobilize resources for the nation’s development. The government relies on us and will need us to create a customer-centric culture to increase compliance and facilitate smarter and easier revenue collection."

In his opening remarks, Acting Director for Human Capital, Mr. Samuel Sithole, challenged everyone in the organization to embrace a culture of change and tolerance. "We need to work together, both the new and mature members of the organization. Those young folks coming in are bringing new ideas that we, as the more mature members, need to embrace and explore," said Mr. Sithole.

Distinctive Consultants guided the discussions. "Culture is linked to strategy, which means that strategy is what we do while culture is how we do it. We have spoken to some of the ZIMRA members, and I am glad that most of us are brutally honest about the prevailing culture," said Rose Nhamo, the lead consultant for Distinctive Consultancy.

Weighing in on the same sentiments, Sean Mahliwa, a behavior change expert from South Africa, emphasized, "We need to develop a client-centric culture that encourages taxpayers to comply and not resist paying their dues. Be patient and nurture your clients, as this is critical for ensuring things are done right. Be ethical and embrace integrity. You change champions should lead with integrity and treat everyone fairly."

How employees relate to each other and their clients is largely influenced by the culture within the organization. Insights from the culture change management project revealed a need for improvement in relationships among employees. Toxic relationships often lead employees to extend their negative energy toward unsuspecting clients, resulting in lower client satisfaction levels.

The Change Consultants emphasized five pillars of the transformation:

• Innovative thinking and continuous improvement
• Trust and collaborative client relationships
• An empowered and accountable workforce
• Client-centric excellence
• Integrity and ethical leadership

ZIMRA has recognized the necessity for culture change. The organization has embraced change, leading to the implementation of cultural reforms, the elimination of fear, the fostering of innovation, the removal of silos, and the promotion of teamwork within ZIMRA.

"The mission of the culture change process is to align the Authority’s modernized service delivery and processes. Change does not only apply to larger initiatives; many seemingly small aspects can have a significant impact on culture and corporate identity," said Sevilia Siziva, one of the culture change agents at the event.

The culture change management project aims to build a ZIMRA brand that both employees and taxpayers can take pride in.

By Tapiwa Marunda

The African Tax Administration Forum (ATAF) and the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) have launched a comprehensive three-year deep dive program in Zimbabwe, aimed at strengthening tax administration within the mining sector.

The program commenced with an intensive workshop held at a local hotel in Harare from February 24th to 28th, 2025.

This initiative builds upon a scoping mission conducted in Harare in May 2024, and the program's origins trace back to when mineral-rich nations convened to address challenges within the mining industry.

The deep dive program seeks to enhance the capacity of African tax administrations in collecting and managing mining sector taxes by fostering a deeper understanding of the mining value chain.

The inaugural workshop in Harare brought together 30 senior government officials from key institutions, including the Ministry of Finance, Economic Development and Investment Promotion, the Ministry of Mines, the Minerals Marketing Corporation of Zimbabwe (MMCZ), and the Zimbabwe Revenue Authority (ZIMRA).

Discussions centered on critical areas such as mining fiscal regime design, transfer pricing, mineral valuation, and adaptation to global minimum tax rules.

The key objectives of the program include enhancing capacity building to improve tax collection efficiency; facilitating knowledge sharing and exchange of best practices; supporting policy development in the mining sector; and promoting sustainable mining and mineral resource management.

A team of ATAF and IGF experts, comprising Mercy Mbithi, Viola Tarus, and Ekpen Omonbude, are leading the deep dive program in Zimbabwe. The team paid a courtesy call to ZIMRA Commissioner General, Ms. Regina Chinamasa, to discuss the program's potential impact.

The delegation emphasized the significance of ZIMRA's engagement in the program, stating, "The deep dive mission will provide an in-depth analysis of mining issues, focusing on policy and legislative areas that require attention. This will assist in the effective implementation of measures to ensure Zimbabwe maximizes revenue from its mineral resources, both now and in the future."

Commissioner General Chinamasa acknowledged the program's importance and provided insights into the potential revenue gains for ZIMRA and the government.

1. What are Harmonized System Codes (HS Codes)?

HS Codes are a standardised numerical method (8-digit classification) of classifying traded products. They were developed by World Customs Organization (WCO) and designed for use in classifying goods when exporting and importing. Zimbabwe Revenue Authority (ZIMRA) has extended the use of HS Codes in classifying domestic of products and services when recording and transmitting sales transactions under Fiscalisation Data Management System (FDMS).

2. How to use HS codes when recording sales transactions on a fiscal device

All VAT registered taxpayers/operators are expected to configure their fiscal devices to assign applicable HS codes when making a sale transaction through a fiscal device

• For all invoice line items where VAT is charged at 0% or Exempted from VAT, a full eight (8)-digit classification HS Code must be captured when generating and/or recording a fiscal tax invoice.
• For all invoice line items where VAT is charged at standard rate (15%), the first four digits are required or optionally a full eight (8)-digit classification HS Code may be captured when generating/recording a fiscal tax invoice.

3. Is displaying HS codes on Fiscal Tax Invoices mandatory?

Displaying HS codes on issued fiscal tax invoice is optional and not mandatory. However, it is mandatory for any configured and interfaced fiscal device to be transmitting the recorded HS codes on issued Fiscal Tax Invoice to the Fiscalisation Data Management System (FDMS) whether displayed or not displayed on the issued/printed Fiscal Tax Invoice.

4. How to classify the domestic supply of services and other intangible products which are not classified on the Customs Harmonized System Codes e.g. Rentals, Consultancy etc.?

While HS codes are suitable for classification of physical products under customs environment, classifying domestic supply of services or intangible products is not available on the conventional HS Code list. Taxpayer are encouraged to use the fiscalisation general classification for services and assign applicable VAT rate accordingly as indicated below:

5. What are the uses of these HS Codes in Domestic Taxes when recording sales transactions?

              HS Codes are used for the following purposes;

• Harmonized classification of domestic supply of goods and services, thereby providing uniformity in identifying nature of transactions amongst national industries and sectors.
• To aid verifications of taxes applicable on domestic supplies made from imported and exported products
• Generating trade statistics for policy making and economic planning.

My Taxes, My Duties: Building My Zimbabwe

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority (ZIMRA) for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.

By Linister Chivizhe

The World Customs Organisation (WCO) Regional Intelligence Liaison Office for East and Southern African (ESA) region, housed under Zimbabwe Revenue Authority, is holding its annual National Contact Points meeting in Zimbabwe’s tourist town of Victoria Falls from 27-29 August 2024. The meeting has a clear focus on strengthening intelligence sharing and forging new partnerships to compact the scourge of illicit trade. The three-day event, themed “Connecting the Globe through Intel Sharing with Old Partners as well as creating the new ones’’  brought together delegates from across the ESA region as well as representatives from RILO Western Europe, SADC Twix, WCO Headquarters and INTERPOL.

The workshop commenced with a warm welcome from ZIMRA’s Head of Compliance, Mr Adrian Swarres, representing the Commissioner General, Ms Regina Chinamasa. In his opening remarks, Mr Swarres lamented the low usage of World Customs Organisation tools in the Eastern and Southern Region (ESA), urging the National Contacts Points (NCPs) to ensure the effective utilisation of all the available WCO tools in fighting against illicit trade. He emphasised the importance of maintaining the integrity of the supply chain and pointed out the need to leverage WCO tools such as CEN, CENComm and the Global RILO network.

Addressing the NCPs, Mr Swarres probed into the findings of the WCO 2023 Illicit Trade Report. The report, he noted, identifies key areas of focus for enforcement activities, including cultural heritage, drugs, anti-money laundering, environment, intellectual property rights, health and safety, revenue and security. This comprehensive report serves as a roadmap for the region’s enforcement agencies as they navigate the complex landscape of illicit trade.

Building on Mr Swarres’ speech, Mr Ousmane Coundoul, WCO CEN Programmes Manager delivered a thought provoking speech where he expressed the critical importance of intelligence sharing between law enforcement agencies and all partners engaged in enforcement activities. He highlighted that challenges faced in combating illicit trade, protecting revenue, ensuring the safety and security of our society are multi-faceted and constantly evolving and indicated the need to join hands as no single agency or organisation can tackle these issues in isolation.

Mr Larry Liza, the WCO Regional Office for Capacity Building (ROCB), through a virtual speech, also highlighted the crucial role that NCPs play. He stressed that where there are changes in administration, NCPs, should ensure that handover and takeover processes are thoroughly conducted so that RILO can continue its functions without interruptions. In addition to that he pointed out that, all NCP should treat information requests with urgency, as issues related to security and enforcement cannot be taken lightly and any delays can have serious repercussions.

As the workshop continues over the next two days, delegates will have opportunity to delve more and deeper into the theme, and the workshop will feature case study presentations, panel discussions and working group sessions aimed at developing concrete strategies and action plans for ESA region for the period 2025 to 2025.

THE Zimbabwe Revenue Authority (ZIMRA) intercepted a major smuggling operation during the 2024 Easter Holiday at Beitbridge Border post, resulting in the seizure of a significant quantity of cannabis and cough syrup.

The combined efforts of the ZIMRA K9 team, officers, and law enforcement agencies successfully thwarted the illegal trade.

A staggering 113.7 kilograms of cannabis and 2 682 of 100 milliliters Benylin cough syrup liquid bottles with an estimated total value of an astonishing USD 140,520.00 was recovered.

During a routine K9 search at the Light Commercial Terminal Shed, the K-9 dogs detected suspicious cargo concealed within a South African registered Toyota Quantum.

The vehicle, which purportedly had passengers and groceries, was found to be carrying packages of cannabis and cough syrups.

ZIMRA officers promptly removed the illicit substances from the trailer compartment after the K-9 dogs alerted them. Upon noticing the dogs, the driver and crew absconded, leading to the confiscation of the vehicle and its contents.

Initially, the officers discovered approximately 29 kilograms of cannabis and 672 bottles of Benylin cough syrup.

However, the K9 staff continued their investigation, determined not to let the case go cold.

With the participation of other border stakeholders, a thorough search was conducted, during which K9 Grace, a highly trained and perceptive dog, detected further contraband beneath the trailer.

The confiscated contraband was promptly secured, and efforts to apprehend the suspects were intensified.

The police remained resolute in their commitment to bring the culprits responsible for this illegal operation to justice and prevent further smuggling activities.

Over the past few years, ZIMRA has successfully foiled numerous attempts by smugglers to traffic illicit drugs within the country, effectively disrupting their unlawful operations.

The Commissioner of Customs and Excise, Mr Batsirayi Chadzingwa, emphasized ZIMRA's unwavering dedication to safeguarding our borders and safeguarding civil society. He stated, "Our K9 unit has undergone extensive training to detect illicit drugs, and this recent operation exemplifies our resolute commitment to combating drug trafficking and preserving the well-being of our communities."

Additionally, he underscored the significance of collaboration between ZIMRA and various law enforcement agencies as a collective endeavor to combat the illicit drug trade.

One of the key strategic projects that the Authority was running in 2022 was the Contact Centre Project which culminated in the Zimbabwe Revenue Authority (ZIMRA)  introducing a contact centre as part of its operations.  This new initiative is expected to have a significant impact on businesses and individuals who interact with ZIMRA on a regular basis.

The facility comes with a toll-free short code, 585, that is accessible across all networks with TelOne subscribers further having the convenience of another line to use, 08688007614. The toll-free line is accessible from anywhere in the country, eliminating the need for face-to-face interactions thereby reducing the time and cost associated with physical visits to ZIMRA offices. Furthermore, taxpayers can use WhatsApp, Email, Facebook and X to access the contact centre.

The introduction of the contact centre is a welcome development for businesses and traders in Zimbabwe as it offers a more convenient and efficient way of accessing information and services thereby improving trade facilitation in Zimbabwe. With a dedicated team of customer service representatives available to provide guidance and support, businesses and traders can navigate the complex regulatory environment with greater ease and confidence. This is particularly important for small and medium-sized enterprises (SMEs) who may not have the resources or expertise to deal with complex taxation and customs issues on their own. The customer service representatives are trained to handle queries and provide assistance on a wide range of issues related to taxation, customs, and other tax-related matters.

In addition to improving trade facilitation, the Contact Centre is also expected to enhance customer experience by providing a more convenient and accessible way of getting information and services. ZIMRA is demonstrating its commitment to customer service by providing a platform through which taxpayers can interact and get timeous feedback.  This should go a long way in contributing to a more positive business environment in Zimbabwe.

As ZIMRA continues to invest in modernizing its operations and improving service delivery, businesses and traders can look forward to a more streamlined and responsive revenue authority in the future. The expectation is to take service and customer experience to another level through this channel.

The Zimbabwe Electronic Single Window (ZESW) concept was introduced in 2022 as part of measures to enhance efficient clearance of legitimate traffic and trade facilitation at the country’s ports of entry.

The objective of the ZESW is to improve trade facilitation and to achieve efficiency and effectiveness in pursuing the goals of revenue collection, enforcement of trade laws, social protection, and providing business intelligence to the government.

Zimbabwe provides the gateway to Africa through the north and south corridor, hence efficient trade facilitation at the country’s ports of entry is key for the region’s rapid economic growth.

The ZESW initiative is also in sync with global trends on customs reforms and best practices, as well as a National Development Strategy 1 priority on trade facilitation.

Currently, the country’s ports of entry are manned by various government departments and agencies that have a critical legislative role in the trade facilitation matrix.

Under the Single Window initiative, ZIMRA as the lead agency has the role to ensure the coordination and harmonization of clearance processes at the country's ports of entry.

The project is in its second year and its first stage of implementation is set to be launched by the end of September 2023. The first phase saw an intensive mapping exercise and integration of all key processes on the Single Window platform.

The major beneficiaries of the single window initiative will be importers and exporters, shipping and freight forwarders, the transport sector, customs administration as well as government departments and agencies, whose mandate includes the movement of food, drugs, health, agricultural-related products, and environment.

Once the initiative is commissioned, clients and stakeholders will not be moving from one agency to another as all the regulatory and transitory services, processes and payments will be done online through a single platform, thus faster, better, and transparent.

The major benefits of the Single Window will be compliance among agencies, more efficient and productive use of resources, enhanced collection of fees, duties, and penalties; streamlined and automated compliance to transitory, legislative, and regulatory requirements, and most importantly predictability, convenience, and efficiency to all actors in cross border trade.

Other benefits include enhanced risk analysis, improved security, reductions in corruption and illegal trade activities, enhanced transparency, ease of access to trade statistics, and accountability.

The ZeSW rides on a robust digital platform and ZIMRA is already activating its system in readiness for the integration and data processing from other agencies.

The United Nations Conference on Trade and Development (UNCTAD) is supporting the ZeSW project as part of the harmonization of the customs service delivery initiative.

Other countries that have successfully implemented the single window concept include Jamaica, Rwanda, Uganda, and Kenya.

The Tax and Revenue Management System (TaRMS) is set to revolutionalise the tax administration terrain in the country through an efficient, effective and easy-to-navigate system based on a digital platform.

TaRMS is a product of the Zimbabwe Revenue Authority (ZIMRA)’s business process re-engineering (BPR) programme which was launched in 2022.

The BPR identified digitalization as the key aspect of improved service delivery to ZIMRA’s diverse clients and the configuration of TaRMS commenced in 2022 following an intensive user needs analysis and assessment.

Domestic taxes are crucial to national transformation and economic viability hence an efficient tax collection process is imperative.

TaRMS is being introduced to close the gaps that have historically affected the efficient collection of revenue.

The new system is set to be commissioned in October 2023 and is aligned with the National Development Strategy 1 priorities which include the ease of doing business, widening the tax base, and enabling a digital economy.

A simplified tax system that is effective and efficient increases compliance levels among taxpayers while reducing the cost of collection.

The TaRMS modules are set to enhance taxpayer experience on any device, automate complex tax processes, and improve tax collection.

The system has the capacity to go beyond collecting tax and revenue as it will be able to give full data analytics that will enable timely decision-making while empowering taxpayers to do self-service such as data entry.

Currently, ZIMRA is undertaking a taxpayer data cleansing exercise to ensure robust data integrity. TaRMS will be data-driven and this will result in increased taxpayer engagement, reduced cost of collection, prevention of fraud, and improved voluntary compliance.

By October 2023 when TaRMS goes live, the taxpayers will be able to seamlessly and efficiently process, on any device, taxpayer registration or reregistration; filing and returns processing; payments; refunds among other processes.

The system will also be integrated with enterprise Bus, ASYCUDA, SAP-FI, Registrar of Companies, Deeds & Intellectual Property, Civil Registry, and Banks.

ZIMRA is undergoing an intensive digitalization and transformation agenda and simplifying business processes and accessibility of the service platforms are some of the key objectives.

ZIMRA’s Five Year Strategic Plan envisions maximizing revenue collection, strengthening the institutional image, and increasing voluntary compliance by 2025 and an effective and efficient tax management system is central to the attainment of these strategic objectives.

TaRMS is being funded by a grant from the African Development Bank (AfDB) and by the Government of Zimbabwe.