Answer to Question #105541 in Management for Molline Parunoda

Question #105541
Examine five areas that ZIMRA should focus on in order to meet or exceed set revenue targets
Expert's answer

Revenue from taxes is the major source of revenue for most states in the world and Zimbabwe is making every effort to improve the revenue collection assigned to its body referred to as Zimbabwe Revenue Authority (ZIMRA). Policymakers and economists of the country imposed a target to the ZIMRA for the amount of revenue to be collected. It is, therefore, the mandate of the Revenue Authority to meet and surpass the target by employing suitable policies to specific areas that shall achieve the goals.

Inflation was a major setback in the economy of Zimbabwe that the ZIMRA was to consider by critical focusing on taxes that affect the prices of commodities. Through this, the price effect is to be set by economically imposing taxes on commodities that will not attract inflation or be substituted by an alternative commodity.

Additionally, good revenue could be realized on mobile money transfer services that are trending in most countries and Zimbabwe is not an exception. Intermediate money transfer tax has the capacity of contributing additional revenue to the Republic of Zimbabwe. ZIMRA should consider simplifying the tax system and curbing tax evasion as a step to realize additional revenue. A simple tax system enhances taxpayer compliance.

Last but not least, ZIMRA should focus on diversifying its revenue collection system by incorporating the best equipment and qualified personnel with an effort to improve its efficiency and effectiveness. The modernized registration system, filling, and control of payment obligation are constituents of efficient operation to earn Zimbabwe revenue when inculcated into their economic policies.            

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