Almot Maqolo, Staff Writer 
THE Zimbabwe Revenue Authority (Zimra) has disbursed ZiG102 million in tax refunds, aiming to alleviate the financial burden on businesses.
Primarily stemming from value-added tax (VAT) overpayments, these refunds are a crucial component of the tax system, enabling registered operators to reclaim excess input tax.
Zimra Commissioner of Domestic Taxes, Misheck Govha, confirmed significant progress in clearing the backlog of refund claims, with the ZiG102 million disbursed this month alone. While acknowledging remaining outstanding amounts, Govha assured continued efforts to expedite refunds.
Despite the standard 60-day processing period, some businesses have reported delays in receiving refunds, even after submitting the required documentation multiple times. Zimra is actively addressing these delays to ensure efficient and timely processing.
In a bid to curb revenue leakages and bolster tax collection, the 2024 national budget introduced several policy adjustments. Notably, the block management system has proven successful in expanding the tax base, increasing registrations, and generating additional revenue in both US dollars and ZiG.
Zimra has also observed encouraging cooperation from informal traders, which Govha believes will significantly benefit revenue collection. Additionally, the forthcoming Tax and Revenue Management System (TaRMS), nearing 80 percent completion, is expected to further integrate the informal sector into the tax net.
Furthermore, Zimra is cracking down on smuggling at border posts through the deployment of drones. These initiatives are part of the broader goal to achieve a ZiG90 billion tax collection target in 2024.
However, analysts caution that authorities may resort to imposing additional taxes as the cost of living and doing business continue to rise, potentially impacting businesses and consumers alike.
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