A framework for digitalising tax revenue collection for the informal economic sphere in Zimbabwe

Abstract

The paper proposes a novel framework for digitalising tax revenue for the Zimbabwe’s informal economic sphere. The study addresses the pressing chalelnge of informal economy taxation, indetifying the absence of a modern (or contemporary) tax framework as a critical catalyst for this study. The purpose of the study was to to devise an innvovative framework tailored to improve tax revenue collection efficiency from the informal economic sector in Zimbabwe. Employing a mixed method approach deemed effective complex subject, data were gathered through structured questionnaire and in-depths interviews. The findings of this study reveals that the existing presumptive tax system is ineffective and insignificantly contributing to the treasury. Based on the results, the study developed a comprehensive contempoary framework designed specifically for tax revenue collection from the informal economic sphere in Zimbabwe. The study, therefore, advocates for the adoption of the proposed framework to streamline tax collection processes within the informal economy, thereby bolstering economic growth and inclusivity.

Keywords

• Zimbabwe
• digitalised tax revenue
• tax revenue
• informal economy; presumptive tax
• tax framework
• Business, Management and Accounting