Staff Reporter
Zimbabwe has recorded a strong start to 2025 on the fiscal front, with the Zimbabwe Revenue Authority (Zimra) surpassing its first-quarter tax revenue target by collecting US$1.506 billion, slightly ahead of the US$1.502 billion projection.
The performance underscores growing fiscal stability under the country’s National Development Strategy 1 (NDS1), particularly under its Economic Growth Pillar.
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, told Cabinet recently that both tax and non-tax revenue collections exceeded expectations, reflecting positive strides in domestic resource mobilisation.
“In terms of the Economic Growth Pillar of NDS1, revenue mobilisation has outpaced first quarter targets, signalling economic resilience and improved tax compliance,” he noted.
The strong quarterly showing sets the tone for the ambitious 2025 fiscal target. According to the national budget, Treasury is aiming for ZiG270.3 billion (approximately US$7.5 billion) in revenue collections, with expenditures forecast at ZiG276.4 billion.
To expand the tax base, Government has rolled out several new tax measures, including a 10% withholding tax on gross winnings from sports betting, a 0.5% tax on fast-food sales, the reintroduction of duties on selected medical products, and a review of the Special Economic Zones (SEZ) regimes.
Zimra Commissioner-General Regina Chinamasa affirmed the authority’s commitment to meeting the annual revenue target, which marks a 17% increase from 2024.
“We are confident of reaching the US$7.15 billion mark by December. The first quarter collection of US$1.506 billion indicates that we are firmly on track,” she said.
In support of efficient tax collection, Zimra is modernising its systems through the Tax and Revenue Management System (TaRMS), which is being implemented in three phases.
The authority has completed core front-end processes and tax agent modules, while back-end integration and risk compliance systems are still underway.
Additionally, fiscalisation efforts are progressing, with internal integration completed with three banks and external integration ongoing with five government departments.
The Risk Compliance Management Module Phase 1 has undergone user acceptance testing, while Phase 2 is currently in development.
Meanwhile, these digital upgrades are expected to improve compliance, reduce leakages, and enhance transparency within Zimbabwe’s public finance system.
