An Assessment of the Effectiveness of Tax Revenue Collection: A Case Study of Zimbabwe

Simbarashe Hamudi


The effectiveness of tax collection has been a persistent issue of great concern in both developed and developing countries. Taxes are now an increasingly important revenue source for national budgets. It is, therefore, crucial for tax revenue authorities to carry out their mandate of raising much-needed government revenue effectively. This descriptive study aims to identify the key determinants of tax revenue collection in Zimbabwe. It assesses these in order to reveal the importance of the role that tax authorities play in increasing government revenue and to identify factors affecting tax revenue collection. Standard data-gathering procedures, such as questionnaires and in-depth interviews, were used. The results of the study reveal that tax revenue collection effectiveness is yet to be attained, and that the revenue authority faces challenges as a result of low levels of tax education amongst taxpayers, ineffective taxpayer identification methods, and poor monitoring and assessment procedures. The findings also show that the tax authority in Zimbabwe is yet to enforce a solid revenue collection methodology that will curb corruption activities and raise the morale of the workforce. The results from this study highlight the need for intensive taxpayer education, and show that the revenue authority should partner with the telecommunications industry, discover ways of motivating taxpayers, and privatize some of its departments. These recommendations could help to improve the effectiveness of tax revenue collection in Zimbabwe.

Keywords: Tax Administration, Revenue Collection Effectiveness, Taxpayer Survey.

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