Source:Zim govt completes TaRMS rollout: AfDB –Newsday Zimbabwe THE African Development Bank (AfDB) says the Zimbabwe government has completed the deployment of the new online Tax and Revenue Management System (TaRMS), developed under a US$10,4 million Tax and Accountability Enhancement Project supported by AfDB. TaRMS provides a transparent taxation system that deals with financial leakages and fraudulent activities to ensure that the Zimbabwe Revenue Authority (Zimra) effectively collects taxes. “The Tax and Revenue Management System was developed under a US$10,4 million Tax and Accountability Enhancement Project supported by the African Development Bank as part of efforts to support the government’s efforts to enhance domestic resource mobilisation,” AfDB said in a statement.
“The bank provided a grant of US$7 million for the design and development of the online system, while the Zimbabwe government funded the procurement of the hardware. The project also included training for internal and external stakeholders and users, as well as change management activities. “According to the Zimbabwe Revenue Authority (Zimra), revenue collected from new taxpayers increased by 238% in 2024 — the first full year following commencement of rollout of the new system — compared to 2023.” On the day of the launch, Mnangagwa described the innovation as a bold step in the country’s economic reform agenda, aimed at enhancing revenue mobilisation, improving taxpayer experience, and building a strong foundation for sustainable growth.
“The introduction of TaRMS is expected to support Zimbabwe in closing revenue leakages, widening the tax base and making it easier for compliant taxpayers to meet their obligations through reduced paperwork, faster processes and clearer compliance rules for businesses,” AfDB said. The TaRMS rollout comes at a time when Zimra is estimated to be collecting fewer taxes than it should, largely due to 76,1% of the economy being informal, which largely goes untaxed. In yesterday’s NewsDay Business edition, it was revealed that the World Bank discovered that only 6% of Zimbabwe’s informal sector pays taxes.
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Yet, this sector represents a gross domestic product (GDP) valuation of US$39,8 billion. Despite this, Zimra is only expected to collect US$7 billion worth of taxes this fiscal year.
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