Informal Sector Tax Administration: Will ZIMRA Ever Win?

Abstract

This desktop and library study aims at reviewing the informal sector tax administration focusing on the tax effort and tax reforms in Zimbabwe. The focus on informal sector tax administration is motivated by the fact that most government revenues are lost due to inefficient and ineffective administration systems and poor or failure to implement recommended tax strategies to augment public funds.  The findings from  reviewed  literature suggests that lack of commitment by ZIMRA staff  and rampant reports of corrupt practices within ZIMRA structures destroys confidence and trust in the whole system hence informal sector will shun paying tax.  The study recommends some ways that ZIMRA and Government of Zimbabwe can implement to at least some level of trust and confidence from the informal sector.

Keywords: Informal sector, Tax Administration, ZIMRA