Creating A ‘Tax Paying Informal Traders’ Culture in Zimbabwe: Can This Be Achievable?

Abstract

This paper attempted to give reasons why it is difficult for Zimbabwe and other developing countries tax the informal sector. This study adopted both a desk and library research approaches. This paper has established that there are many well researched practical recommendations in the literature on how to tax the informal sector and governments have failed to implement these practical strategies. However this paper recommended that a three factor audit trail framework must be developed in order to improve informal sector tax revenue.

Keywords: Taxation, Informal Traders, Culture, Zimbabwe, Myth, Reality