Zimra sets US$7,2 billion revenue target

Michael Tome, Zimpapers Business Hub

THE Zimbabwe Revenue Authority (Zimra) remains optimistic about achieving its 2025 revenue target of US$7,2 billion, citing the implementation of several strategic initiatives aimed at boosting collections.

Zimra’s multi-pronged strategy includes expanded audit coverage, targeted sector-specific interventions, the formalisation of the informal economy, and intensified taxpayer education and enforcement efforts.

According to the authority, a projected six percent economic growth rate and stabilising macroeconomic conditions are expected to create a conducive environment for revenue mobilisation. Zimra believes this positive outlook will significantly enhance its capacity to meet the ambitious target.

The strategic focus for 2025 will centre on automating customs processes and scaling up key projects such as the Zimbabwe Electronic Single Window (ZeSW), drone surveillance, and the upgrade of ASYCUDA (Automated System for Customs Data) World. These initiatives aim to modernise border management and improve trade facilitation.

Additionally, Zimra plans to consolidate and optimise its domestic tax digitisation projects, including the Tax and Revenue Management System (TaRMS) and the Fiscalisation Data Management System (FDMS), to strengthen compliance oversight and analytical capabilities.

The authority also emphasised its commitment to leveraging technology and innovation to enhance service delivery, institutional resilience and overall revenue performance. Its modernisation and digital transformation agenda is expected to drive growth, efficiency and effectiveness in revenue collection, ultimately supporting Zimbabwe’s broader economic development goals.

“As we pivot to 2025, Zimra’s strategic focus intensifies around the automation of customs processes, which forms the core pillar of our strategy for the final year of the plan. Projects such as ZeSW, drone surveillance and the ASYCUDA World upgrade are being scaled up to modernise border management, improve trade facilitation and bolster compliance through intelligent risk profiling and automated decision-making,” said Zimra Chairman Mr Anthony Mandiwanza, addressing stakeholders at the authority’s 2024 Annual General Meeting.

Mr Mandiwanza also noted that Zimra would finalise its domestic tax digitisation projects, TaRMS and FDMS, and shift its focus to optimisation, user adoption and integration with third-party platforms, to enhance compliance and analytics.

“At the same time, 2025 will see the consolidation and winding up of our transformative domestic tax digitisation projects, TaRMS and FDMS. With these now operational, focus shifts to optimisation, user adoption and integration with third-party platforms to enhance compliance oversight and analytical capability. These developments underscore Zimra’s commitment to innovation, institutional resilience and improved service delivery,” he said.

This follows Zimra’s surpassing of its 2024 net revenue target, collecting ZWG 116,47 billion against a target of ZWG 105,63 billion — achieving a 10,26 percent positive variance.

According to Zimra, the main drivers of revenue growth included Value Added Tax, which surged by 39,46 percent and accounted for 31,21 percent of total revenue. Pay As You Earn (Paye) rose by 56,5 percent, contributing 19,38 percent, while Corporate Income Tax (CIT) increased by 85.25 percent, contributing 15,40 percent. Excise duty grew by 20 percent, accounting for 11.9 percent of total collections. Customs Duty rose by 6.89 percent, contributing 6,79 percent, while intermediated money transfer tax added 5.71 percent.

However, Mining Royalties and excise duties underperformed, attributed to declining global commodity prices and a shift in consumer preferences towards low-cost, smuggled alternatives.

Speaking at the 2024 Annual General Meeting, Zimra Commissioner General Ms Regina Chinamasa said the growth in revenue collections reflects the effectiveness of the authority’s strategies and the dedication of its staff in navigating a challenging economic environment.

“Zimra surpassed its 2024 net revenue target, collecting ZWG 116,47 billion against a target of ZWG 105.63 billion, achieving a 10,26 percent positive variance. This outcome is a testament to the efficacy of the Authority’s revenue mobilisation strategies and the steadfast dedication of staff in navigating a complex and often volatile economic environment,” said Ms Chinamasa.

In 2024, Zimra achieved significant operational transformation through key projects such as TaRMS, FDMS, ZeSW and drone surveillance. These initiatives enhanced revenue collection, border surveillance, trade facilitation and compliance oversight.

Notably, TaRMS revolutionised tax administration by automating core processes, improving taxpayer service delivery and boosting voluntary compliance and operational efficiency.

Despite these achievements, Zimra continues to face challenges, including tax evasion, non-compliance within the informal sector, currency volatility, resource constraints and over-reliance on a narrow range of economic sectors.

Addressing these issues will require sustained innovation, strategic planning and robust enforcement to ensure long-term revenue growth and improved tax compliance. Overcoming these hurdles will be critical for Zimra to meet its revenue targets and support Zimbabwe’s economic development.

The post Zimra sets US$7,2 billion revenue target appeared first on herald.