ZNCC Engagement with ZIMRA on Finance Act No. 7 of 2025
ZNCC recently convened a high-level engagement with the Zimbabwe Revenue Authority (ZIMRA), led by ZNCC President Mr. Tapiwa D. Karoro on 16 January 2026, to discuss the implementation of Finance Act No. 7 of 2025, with a focus on promoting tax certainty, addressing business concerns, and strengthening collaboration between the public and private sectors.
The engagement provided a platform for ZNCC to present key challenges affecting the business community, including increasing complexity in tax administration, compliance difficulties faced by SMEs, operational constraints linked to the six-month validity of Tax Clearance Certificates, overlapping tax obligations, and fragmented taxation frameworks. ZNCC also highlighted the rapid expansion of the informal sector, which continues to undermine fair competition and revenue mobilisation.
Members’ concerns around currency modalities for tax payments were addressed, with ZIMRA confirming that approximately 75% of taxes are currently collected in USD and 25% in ZiG, against a government policy direction towards a 50% USD / 50% ZiG structure. Legislative provisions now allow Corporate Income Tax and VAT payments on a 50/50 basis, providing greater flexibility and predictability for businesses.
ZNCC further raised issues relating to digital taxation, including VAT on imported services and withholding tax on software licences, as well as the impact of offshore digital platforms on local enterprises. The need for assisted compliance, including structured payment plans for distressed firms, was emphasized as part of efforts to improve compliance while supporting business continuity.
ZIMRA reaffirmed its commitment to closer stakeholder engagement and announced the introduction of quarterly structured dialogue meetings to track progress and resolve emerging challenges. The Authority also reported significant progress in tax base expansion, having registered approximately 100,000 new taxpayers in the past year, with a further target of 50,000 in the current year. Measures to strengthen presumptive tax systems, enhance taxpayer education, intensify digital compliance, and curb smuggling and revenue leakages were outlined.
Additional updates included the strengthening of risk-based audits, expanded use of digital platforms and desk-based reviews, and continued automation of tax administration systems. ZIMRA also highlighted new measures to ensure taxation of both local and offshore digital service providers, including minimum effective tax rates for e-commerce platforms and country-by-country reporting to address revenue leakages.
Both ZNCC and ZIMRA acknowledged ongoing challenges such as persistent non-compliance, trust deficits between taxpayers and authorities, and the growing informal economy. The engagement concluded with a shared commitment to continuous dialogue, policy coherence, and institutional collaboration aimed at improving compliance, enhancing trust, and fostering a predictable and competitive business environment in support of Zimbabwe’s sustainable economic growth
