A Guide to Zimbabwe Goverment Revenue

A GUIDE TO ZIMBABWE GOVERNMENT REVENUE | A Toolkit and Guide for Legislators and Civil Society Organizations | | This toolkit is meant to equip Legislators and Civil Society Organizations to effectively monitor the Government of Zimbabwe Revenues as part of the broader Budgetary Policy Analysis and input | | | |

Table of Contents Chapter 1: Introduction 4 1.1 Background 4 1.2 Enabling Legislations 4 1.3 Tax Reforms 5 1.4 Taxes and the economy 6 1.5 The toolkit 6 Chapter 2: Government Revenues categories 8 2.1 Definition of Revenue 8 2.2 Types of Government Revenue 8 2.3 Major Taxes charged in Zimbabwe 10 2.4 Major Tax Types 14 2.5 Non-tax revenues: 14 2.5.1 User charges 14 2.5.2 Administrative revenues 14 2.5.3 Debt 14 2.6 Institutional Framework for Revenue Collection (Zimra) 15 2.7 Consolidated Revenue Fund 15 Chapter 3: An analysis of all sources of revenue or income for government 17 3.1 Analysis of government revenue (2010 – 2011) 17 3.2 Graphical Analyses of Government Revenues 18 Graph 1: Contribution to the Zimbabwe Government Revenue: 2010 18 3.3 What to look for when analyzing the revenue in the Budget 21 Chapter 4: An assessment of the effectiveness and efficiency of all sources of government revenue 22 4.1 Why does tax matter? 22 4.2 Ability to pay principle 23 4.3 Progressive Tax 23 4.4 Regressive Tax 24 4.5 Regressive tax examples 25 4.6 The benefit principle 27 4.7 Equity and efficiency in tax enforcement 27 4.8 Tax evasion, tax avoidance and tax delinquency 27 4.9 Tax enforcement efficiency 28 4.10 Corruption 28 5.1 Oversight institutions 31 Chapter 5: The social and economic implications of the various ways of raising government revenue 32 5.2 Taxation and Development 33 5.3 Impact of taxation on economic and social development 33 5.4 Role of taxes in economic development 33 Chapter 6: Recommendations on other possible sources of revenue for Government. 35 6.1

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