THE Zimbabwe Revenue Authority (Zimra) says its new Tax and Revenue Management System (TaRMS) is a game-changing solution for both domestic resource mobilisation and ease of doing business for taxpayers and agents.
The new system will be implemented in three phases beginning next month, with the full system set to be in place by August next year.
“Zimra is facing a series of challenges regarding the current system used in tax and revenue administration under the Domestic Taxes Division.
“We have realised that the current system is not meeting the organisation’s business requirements, leading to reduced stakeholder and taxpayer confidence in the authority,” Zimra commissioner-general Regina Chinamasa told a stakeholder engagement in Harare this week.
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“The system challenges cut across the core functions of the Domestic Taxes Division in terms of taxpayer registration, tax returns filing and processing, tax payments and revenue accounting, debt management, audit and risk, case management, and reports,” Chinamasa added.
She said Zimra needed to keep abreast of the trendiest, efficient, and effective tools and techniques in the discharge of its mandate.
“That is why we have seen it fit to replace the current system with this new Tax and Revenue Management System.
“Faced with the persistent system challenges, Zimra benchmarked with good practices in revenue administration and supporting systems and identified system gaps, necessitating the modernisation agenda undertaken from 2020.
“Zimra made a decision to identify, acquire, and implement a robust simple, user friendly, highly automated, reliable business driven Tax and Revenue Management System that is compliant with international good practices,” Chinamasa said.
“Stakeholder engagements and inputs were taken aboard as Zimra reflected on the new system that will address the pain points from you our stakeholders.
“TaRMS, is a refreshed modernised system that would improve user experience and enhance operational efficiency in revenue administration.”
Chinamasa described TaRMS as a revolutionary platform designed to streamline and enhance the authority’s clients’ tax experience.
“It will provide an exciting new era of tax administration, where efficiency and simplicity reign supreme.
“By reducing manual tasks, simplicity and streamlining workflows, we free up valuable time and resources, allowing taxpayers and agents to focus on enhancing overall tax compliance and engaging in profit-making endeavours,” she said.
The TaRMS project is fully-funded by the government of Zimbabwe, and the African Development Bank (AfDB).
It is funded under the Tax and Accountability Enhancement Project (TAEP). Members of the TAEP are Zimra, the Parliament of Zimbabwe, and the Office of the Auditor-General.
“The system will help the organisation to effectively and efficiently perform its core mandate of revenue collection.
“It is going to support Zimra’s strategic direction of maximising revenue collection since it is a fit-for-purpose tax administration solution. It is also a user-friendly system that will enhance service delivery,” Chinamasa said.
Small and Medium Enterprises Development Corporation (SMEDCO) business analyst Collins Kanondo expressed confidence that the new system would help bring the informal economy into the formal sector.
“SMEs are the hub of this economy and I know Zimra as the tax authority are eager to bring on board this great economy player.
“The new system has a number of improvements such as convenience. SMEs need that convenience because complying with tax laws is not easy.
“SMEs want to formalise. They are sourcing business from bigger players so they need the system. Compliance with regulatory authorities makes SMEs visible and gives them access to bigger contracts and Praz (Procurement Regulatory Authority of Zimbabwe),” Kanondo said.