Finance Minister Professor Mthuli Ncube says the country's long-term development goals depend on pulling thousands of small and informal businesses into the national tax system through a new partnership between the tax authority and local councils.
Speaking at a ground-breaking ceremony for the Zimbabwe Revenue Authority's (Zimra) new headquarters in Harare, Prof Ncube said many informal traders were invisible to Zimra despite operating legally under municipal regulations.
"Some of these small businesses are informal to Zimra but formal to city councils," he said noting that vendors are now required to obtain licences from local authorities.
"It's cheaper to pay for the licence than to bribe a policeman every day, so they comply. Therein lies a solution, collaborate between Zimra and local authorities." he added
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The minister said aligning local council registration systems with national tax structures could significantly expand Zimbabwe's tax base as the government targets US$9bn in revenue by 2026.
"We have to reach that sector, which is now part of a US$52.3bn GDP because informality is where revenue is hiding," he said.
He said the country must continue to rely on domestic resource mobilisation, warning that external financing will remain limited.
"It won't be easy for us to raise concessional funding. Zimbabwe has survived on domestic resource mobilisation for years, and we will continue on that path."
Prof Ncube also said shifting geopolitical priorities, particularly increased defence spending in wealthy nations meant African countries should not expect significant aid flows.
"Don't expect aid to come into Africa in a big way anymore. We have to fund our own issues," he said.
He commended Zimra for its ongoing digitalisation programme, international certification achievements and efforts to strengthen taxpayer education.
The construction of Zimra's new head office, he added, would enhance professionalism and improve service delivery.
"Zimra is the largest financial institution in the country. It needs a proper head office," he said
