An analysis of the effectiveness of revenue collection strategies on enhancing the financial position of Zimbabwe

Abstract

Developing effective ways in revenue collection has been an important matter in tax and revenue collection. The study explored the strategies and the advent of new instruments that had been put in place by ZIMRA to help revenue collection to be effective. This was to significantly enhance revenue collection in all Departments. Implementation of innovative revenue collection strategies was supposed to improve its organization structures, training, manpower planning, developing teamwork among management and staff, new approaches to reward management and adaptation of total quality management. The influences of various revenue collection strategies on revenue collection have not been investigated. The purpose of this study is to examine the effectiveness of revenue collection strategies at ZIMRA in Zimbabwe. A combination of qualitative and quantitative techniques was used on the characteristics and status of revenue collection strategies at ZIMRA with regard to enhancements of revenue collection. Semi-structured Interviews were conducted with key informants and the researcher targeted senior officials at ZIMRA. Thirty five questionnaires were distributed among the taxpayers who were selected using stratified random sampling. Data presentation of research findings was done using Microsoft Excel and qualitative data analysis was hinged on thematic and content analyses. The research findings established that adoption of effective revenue strategies is the crucial component to enhance a sound fiscal position in Zimbabwe. The ministry of Finance had called for penalisation of tax evaders and curbing out all the sources of revenue collection as a way to mobilise revenue. the research findings established that revenue collection strategies used in Zimbabwe in enhancing the financial position are effective as evidenced by ZIMRA surpassing its revenue targets. The study concluded by recommending an efficient system at ZIMRA so as to enhance effective revenue collection. It was noted that the revenue body should be given its full autonomy so that it cannot face challenges in mobilising revenue. Further research should be done in other revenue collection bodies so as to enhance revenue collection and increase’s the government’s income.