Sinokubonga Nkala
Innocent Mujeri, Correspondent
ZIMBABWE’S 2025 National Budget stands as a beacon of progress, emphasising self-reliance and inclusivity while charting a path for sustainable growth. Among its most transformative aspects is the deliberate expansion of the country’s tax base. This move is not just a fiscal strategy; it is a call to all Zimbabweans to actively participate in the nation’s development by embracing tax compliance as a shared responsibility.
Broadening the tax base ensures that the burden of financing public services and infrastructure does not rest solely on a small group of formal sector employees and businesses. Instead, it draws from the entirety of Zimbabwe’s dynamic economy, including the informal sector, emerging industries, and under-tapped revenue streams. This is a shift that will not only stabilise public finances but also foster a more equitable economic system where everyone contributes their fair share.
A wider tax base is the hallmark of thriving economies worldwide. In countries such as the United Kingdom, the tax system is comprehensive, ensuring that every individual and business plays a role in sustaining essential services. Taxes in the UK finance the National Health Service, public education, infrastructure, and welfare systems — institutions that form the backbone of society. Similarly, in Scandinavian countries, high compliance rates and progressive tax systems have enabled unparalleled social benefits and living standards.
Zimbabwe’s move toward broadening its tax base mirrors these global examples, reflecting an ambition to elevate national development while addressing socio-economic inequalities.
At the core of this budget is a clear strategy for generating the revenue necessary to finance its ambitious agenda. Tax compliance measures are being strengthened, ensuring that every Zimbabwean contributes to the nation’s growth. Enhanced monitoring and enforcement systems will capture revenues previously lost to tax evasion. Digital platforms are being rolled out to streamline tax payments, making it easier for individuals and businesses to comply with their obligations.
The informal sector, a vibrant but often untapped segment of Zimbabwe’s economy, is now being brought into the fold. Small and medium enterprises, which form the backbone of entrepreneurship and innovation in the country, will be incentivised to formalise their operations. By simplifying tax requirements and offering supportive structures, the Government is ensuring that these businesses can thrive while contributing to the national treasury.
Emerging sectors such as digital commerce and technology are also being targeted as new sources of revenue. As e-commerce transforms the global economy, Zimbabwe’s decision to tax digital transactions places it among forward-thinking nations aligning with global trends. This move not only diversifies the revenue base but also ensures that modern industries contribute to the country’s development in proportion to their economic footprint.
Traditional sectors such as mining and telecommunications, with their high-value outputs, will play a significant role in funding the budget. Increased royalties on gold and diamond mining ensure that the nation benefits fairly from its natural wealth. At the same time, levies on telecommunications and energy are designed to capture revenues from sectors critical to Zimbabwe’s modernisation.
Non-tax revenue also plays an important part in financing the 2025 budget. Dividends from State-owned enterprises, fees from Government services, and returns from the Mutapa Investment Fund are pivotal in reducing the over-reliance on direct taxation. By exploring these avenues, the government is ensuring a more diversified and sustainable approach to revenue generation.
The decision to rely heavily on domestic revenue mobilisation demonstrates the Government’s commitment to self-reliance. Unlike in the past, where external borrowing and aid often formed significant portions of budget financing, Zimbabwe is now prioritising internal resources. This shift not only fosters national ownership of development projects but also strengthens fiscal sovereignty. Where borrowing is necessary, the focus remains on concessional loans with favorable terms, ensuring debt sustainability and long-term economic stability.
Public-private partnerships (PPPs) are also being promoted as a critical component of infrastructure development. This model, successfully implemented in countries such as South Africa and India, leverages private sector expertise and resources to deliver public goods. By inviting private investment into sectors such as transport and energy, the government is ensuring that critical projects proceed without overstretching public finances.
Underlying these efforts is a profound understanding that taxes are the lifeblood of any nation. They fund the infrastructure, education, healthcare, and social programs that underpin economic growth and social stability. Paying taxes is not merely a legal obligation — it is a patriotic duty, a contribution to the collective good. Countries that have embraced this ethos, such as the UK and Germany, have reaped the rewards of robust public services and high standards of living. Zimbabwe, too, stands to benefit enormously as more citizens and businesses join the tax base.
The social contract between citizens and the state is built on the principle of reciprocity. Citizens pay taxes, and in return, governments provide essential services and safeguard public welfare. In Zimbabwe, this contract is being renewed. The government has committed to ensuring transparency and accountability in the use of public funds. Regular updates on budget implementation and the visible impact of public investments will reinforce trust in the system and encourage greater tax compliance.
Simplifying tax processes is another key strategy to foster compliance. Bureaucratic hurdles often discourage businesses and individuals from meeting their tax obligations. By introducing user-friendly systems and clear guidelines, the Government is making it easier for people to fulfill their responsibilities.
Public awareness campaigns are also being launched to educate citizens about the importance of taxes and the role they play in nation-building. Highlighting success stories, such as infrastructure projects funded by taxes, can inspire a sense of ownership and pride among taxpayers.
Incentives for compliance are also crucial. Offering benefits such as reduced rates for early or accurate tax payments can motivate individuals and businesses to prioritise their tax obligations. For small businesses and startups, especially in the informal sector, tax relief during their formative years can encourage formalisation and growth.
The success of Zimbabwe’s tax reforms depends not only on government initiatives but also on the active participation of its citizens. Paying taxes is an act of patriotism, a way of investing in the nation’s future.
Just as taxpayers in the UK fund the NHS or those in Scandinavian countries support world-class welfare systems, Zimbabweans have the power to transform their country through collective contributions.
This is not just about economics; it is about building a legacy. When roads are built, hospitals equipped, and schools expanded using tax revenues, every taxpayer becomes a stakeholder in the nation’s progress.
It is a shared journey, one where each contribution — no matter how small — plays a part in shaping a prosperous Zimbabwe.
The 2025 National Budget is a bold step toward fiscal self-reliance and equitable development. It lays the foundation for a more inclusive tax system and emphasises the importance of shared responsibility in nation-building.
As Zimbabweans, we are called to rise to the occasion, embracing our role in this transformative journey. Paying taxes is not just a duty; it is an investment in our collective future, one that will yield dividends for generations to come. Let us seize this moment to build a stronger, more resilient Zimbabwe, together.
mbulelo smpofu
