Conversations with youth about tax in Zimbabwe are always punctuated with anger as taxes are often viewed as a financial strain. Youth are fully aware that taxes are the foundation of any functional society, or rather the financial backbone of governance which provides the resources that governments need to provide desired services to the public such as infrastructure development, healthcare services and fostering national development to mention a few. However, paying taxes becomes a burden when people fail to access basic human rights such as healthcare and education, yet they are paying more than their income in taxes.
In a heated session of a coffee and conversation seeking to build citizens’ agency at the YIT Hub, the participants questioned why the Consolidated Revenue Fund (CRF) does not allocate the taxpayer’s contribution towards the taxes’ intended purpose. The Zimbabwean Constitution provides a framework for ensuring that taxpayer contributions are managed transparently and effectively, particularly through the mechanisms established under the Consolidated Revenue Fund (CRF). However, misuse of public funds coupled by the centralization of revenue management is then regarded as a huge disadvantage to marginal provinces regardless of the establishment of the Devolution Fund which on its own is contested between local councils and the ministry of local government. As a practical example, up-to-date, citizens noted that with every transaction that they pay to ZEDTC, there is a contribution towards the Rural Electrical Fund (REF). This is a shocker because even in urban settings there is a lack of an affordable and constant supply of electricity among other sources of clean energy. This leads to another question of the relevance of state parastatals in the existence of taxes. One such parastatal that raised questions is the National AIDS Council that has been dependent on external funding yet citizens pay an AIDS Levy. While there are many questions that need answers, there is need to urgently address why taxpayers – especially entrepreneurs – are currently being harassed by the Zimbabwe Revenue Authority (ZIMRA).
Of great importance to Youth for Innovation Trust is the welfare of young people in the country. Amidst of harassment in the form of confiscation of goods, closure of small retail shops and crackdown on vendors, YIT understands that there is an information gap that needs to be addressed and this begins with understanding tax evasion in the current context. Tax evasion is the illegal practice of deliberately avoiding paying taxes owed to the government. This can take many forms, such as underreporting income, inflating deductions, or failing to file tax returns. Tax evasion is not only a violation of the law but also a betrayal of the collective good. Eliminating tax evasion requires both enforcement and education. When people understand the tangible impact of their taxes, they are more likely to comply willingly. Moreover, the cost of compliance should be affordable to allow for the ease of doing business.
Citizens need to take into account that their relationship with the government is intertwined. They have the right to pay taxes to the government, and likewise the government should be able to provide services in an effective and transparent manner. It is your duty as a citizen to understand your role and strengthen your agency through educating yourself about your rights and expectations as a tax payer and demand transparency and accountability from relevant authorities by finding information on how taxes are collected and spent. By exploring the taxpayer’s rights and responsibilities, we can better understand how our contributions shape the nation’s future. As citizens, we must embrace our collective responsibility to pay taxes and demand accountability. Only by working together can we ensure that every dollar paid in taxes translates into meaningful progress. After all, a nation’s strength lies in its people, and together, we have the power to build a brighter future for all.
Be on the lookout for more conversations around Tax Justice and Zimbabwe’s Fiscal Policies on the YIT YouTube Chanel as we continue to build citizens’ agency.
Article by Blessing Yevai Mutanga
Youth For Innovation Trust 