By Alois Vinga
ZIMBABWEANS are among the world’s least taxed citizens hence the need to continue broadening the country’s tax base, Zimbabwe Revenue Authority (ZIMRA) has said.
At a recent media briefing, ZIMRA Commissioner General, Faith Mazani dismissed wide assertions Zimbabweans were among the world’s most taxed citizens.
“When we speak about broadening the tax base, we are not only talking about increasing the taxes.
“Remember, the country has many people who are not paying taxes and we analyse the figures on a scale of those who are compliant, you will find that a lot of people are not contributing anything,” she said.
Mazani said effective tax rates that Zimbabweans were paying were even too low compared to those of other countries.
“In Swaziland for instance, company tax being paid is at 27 percent of the company’s income and yet Zimbabwe is still at 25 percent.
“So, it is not true to say that Zimbabweans are overtaxed but the only circumstance I agree is with individual tax for those who are in employment because workers tend to pay more depending on how much they are earning and in a nutshell our taxes are paid by a few,” she said.
ZIMRA’s commissioner for Domestic Taxes, Rameck Masaire, said there was need for the country to transform its tax legislation in line with emerging market trends that are technologically inclined.
“In any other economy, tax legislation needs to move at the same pace of business transformation.
“In the past, Zimbabwe was dependent on manual taxation system but the emergence of technology and mobile money has presented challenges which requires us to move with times,” he said.