Zimra sees increase in taxpayer registrations as collections increase 63% in Q1
HARARE – The Zimbabwe Revenue Authority (ZIMRA) reported a significant increase in taxpayer registration during the first quarter of this year, adding 32,225 new taxpayers, with approximately 90% of these new registrants from the informal sector.
This drive to incorporate the informal sector into the tax bracket comes at a crucial time, as the informal economy now constitutes over 60% of the overall economy. The latest figures demonstrate a positive upward trajectory in taxpayer acquisition compared to the first quarter of 2024, which saw 25,013 newly registered individuals and entities.
This 28.83% increase in new taxpayer registration between the first quarter of 2024 and the first quarter of this year highlights ZIMRA’s intensified efforts and the growing responsiveness of the informal sector to tax obligations. This progress is vital for broadening the national tax base and ensuring a more equitable contribution to Zimbabwe’s economic development.
ZIMRA acting Corporate Affairs Executive Inzwirashe Munonwa told FinX that “the number of new taxpayers registered in the first quarter of 2025 was 32,225 versus 25,013 newly registered in the first quarter of 2024. Approximately 90% of the new registrants are from the informal sector.”
The revenue authority reported a significant 62.73% surge in net revenue during the first quarter of 2025 compared to the same period in 2024, with collections exceeding US$1.5 billion. This growth, primarily fueled by increased personal income tax revenue due to enhanced mobilisation efforts for domestic development funding, positions ZIMRA favourably to meet, and potentially surpass, its annual target of US$7 billion. Having already collected US$1.506 billion against a first-quarter goal of US$1.502 billion (equivalent to ZiGS40.32 billion), current projections indicate a year-end revenue of over US$7.15 billion, or ZiGS220 billion.
The revenue collection trends are being solidified by measures to boost collections riding on improved voluntary contributions from clients based on the automation drive last year and the implementation of new revenue measures as announced in the 2025 budget.
Looking ahead, the authority aims to build on this success through a multi-pronged strategy. Key objectives for the remainder of the year include enhanced engagement and communication with taxpayers, more rigorous targeted follow-ups and prosecution of non-compliant entities, and the implementation of technological and system enhancements to improve efficiency.
Furthermore, ZIMRA will focus on strengthening compliance and monitoring activities, providing robust client assistance and outreach programmes, and utilising risk profiling and incentives to foster a culture of compliance.
-finx
