Zimra’s new tax administration to boost trade
THE Zimbabwe Revenue Authority’s announcement of a major overhaul in the country’s tax administration system has come at an opportune time, when Zimbabwe is looking at enhanced tax compliance, trade facilitation and resource mobilisation, experts have said.
ZIMRA last week announced the launch of its new Tax and Revenue Management System (TaRMS), which is expected to benefit taxpayers, and enhance compliance and trade facilitation by the tax authority.
TaRMS comes as a response to several key challenges taxpayers have faced, including difficulties in filing returns, lack of data integrity and cumbersome processes for tax payments and refunds.
Designed to foster voluntary compliance and make tax management more straightforward for the public, the system encompasses functions such as taxpayer registration, tax returns processing, tax payments and debt management.
According to the authority, the new system seeks to address challenges faced by both taxpayers and ZIMRA officials, while also promising a more streamlined, user-friendly experience.
In an interview, Freight Architects Zimbabwe president Mr Trythanks Nyikadzino was upbeat the proper implementation of the system would plug some loopholes in the tax administration system, as well as bring efficiency at ports of entry.
“TaRMS has come at the right time. Our wish as clearing agents is that it should improve the current systems (for example, Asycuda), which are frequently going on and offline.
“The Asycuda system has been causing delays at the border posts when it goes offline.
“This affects trade and movement of cargo in and out of Zimbabwe,” he said.
Mr Nyikadzino added that successful implementation of TaRMS will also address some of the major pain points they faced as clearing companies, including delays at ports of entry.
“I believe when this system, if fully implemented, it should also reduce officer-to-agent interference. This reduces corruption and delays.
“My recommendation to ZIMRA is that they should properly train and equip their officers so that this system will function properly,” he said.
ZIMRA has highlighted focus on end users, stating the objective of revenue mobilisation and fostering voluntary taxpayer compliance, which can only be effectively achieved with a system that supports and eases the burden on taxpayers.
Explaining the system to stakeholders, TaRMS project manager Mrs Gamuchirai Makwangudze said the system is also expected to address cases of duplication of processes.
In a bid to foster a holistic approach to tax management, TaRMS will integrate with various financial and Governmental institutions to include banks, mobile money platforms and agencies like the National Social Security Authority, and the Reserve Bank of Zimbabwe.
Such integration not only streamlines the tax administration process, but also makes it easier for taxpayers to comply with existing regulations by validating their information across multiple platforms.
“Integration with the Registrar of Companies will assist ZIMRA to grow the taxpayer base (all registered companies will be automatically registered in TaRMS). The system can register public officer/representatives, directors, shareholders, including percentage of shareholding.
“TaRMS will eliminate overpayments and duplicate payments by taxpayers, since payment is based on the return submitted. It will eliminate tax payments mispostings.
“With TaRMS, a single payment can be made to settle several tax obligations, making it cheaper and convenient for the taxpayer,”said Mrs Makwangudze.
Among the other benefits she outlined were improved service delivery, reduced client complaints, increased revenue collection and enhanced database integrity.
Importantly, the system promises reduced cost of collection, which should be a welcome relief for taxpayers, with small and medium enterprises (SMEs) expected to benefit from the system.
Small and Medium Enterprises Development Corporation business analyst Mr Collins Kanondo said the new system is a welcome development that is expected to bring the much-needed convenience by SMEs and voluntary compliance from the sector that contributes significantly to the Zimbabwe economy.
“It is a welcome development that brings great convenience. SMEs want convenience. Already, tax compliance is not easy, so, if you make it very difficult, compliance levels among SMEs will be low.
“We are quite confident about this. SMEs are now dealing with big clients and to get a contract with those big companies, you need tax clearance,” said Mr Kanondo.
TaRMS is expected to go live on October 12.