The Zimbabwe Revenue Authority (ZIMRA) has issued a warning that strict tax compliance is now non-negotiable for all businesses, unveiling a massive digital transformation and data-driven enforcement strategy that it says is essential for national economic stability.

However, the aggressive push has been met with immediate concern from the Small and Medium Enterprises Association of Zimbabwe (SMEAZ), which argues the current regulatory framework is so burdensome it will kill compliant small businesses, urging ZIMRA to adopt an SME-friendly system.

Speaking at the Institute of Chartered Accountants of Zimbabwe (ICAZ) Indaba, ZIMRA Commissioner for Domestic Taxes, Misheck Govha, outlined the authority’s new, uncompromising stance.

He set a target for 80% of clients to submit returns on or before the due date as part of a move toward a data assessment requirement.

Govha announced that fiscalization is now compulsory for all businesses.
“If you are not fully fiscalized in terms of FTMS, you are not going to get a tax clearance.” He said.

The authority is developing a mobile app to enable informal businesses to fiscalize using their phones, broadening the tax net.

ZIMRA is now deploying Artificial Intelligence (AI) and data analytics to actively monitor taxpayer behavior and enforce compliance. Govha warned that the authority will not hesitate to take action against evaders.

Enforcement is being underpinned by integration with banks, the civil registry, and the registrar of companies to build a comprehensive taxpayer profile.

SMEAZ Executive Officer Farai Mutambanengwe warned that the current tax system is misaligned with SME operations, stating it’s designed for organizations that have chartered accountants.

Mutambanengwe stressed that the high regulatory burdens stifle growth and encourage non-compliance, not out of malice, but out of necessity.

“For most of these businesses, if they comply then they are dead in the water,” he said, suggesting compliance costs make their operations unsustainable.