A Guide to Zimbabwe Goverment Revenue

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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| |

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Table of Contents
Chapter 1: Introduction4
1.1Background4
1.2Enabling Legislations4
1.3Tax Reforms5
1.4Taxes and the economy6
1.5The toolkit6
Chapter 2: Government Revenues categories8
2.1Definition of Revenue8
2.2Types of Government Revenue8
2.3Major Taxes charged in Zimbabwe10
2.4Major Tax Types14
2.5Non-tax revenues:14
2.5.1User charges14
2.5.2Administrative revenues14
2.5.3Debt14
2.6Institutional Framework for Revenue Collection (Zimra)15
2.7Consolidated Revenue Fund15
Chapter 3: An analysis of all sources of revenue or income for government17
3.1Analysis of government revenue (2010 – 2011)17
3.2Graphical Analyses of Government Revenues18
Graph 1: Contribution to the Zimbabwe Government Revenue: 201018
3.3What to look for when analyzing the revenue in the Budget21
Chapter 4: An assessment of the effectiveness and efficiency of all sources of government revenue22
4.1Why does tax matter?22
4.2Ability to pay principle23
4.3Progressive Tax23
4.4Regressive Tax24
4.5Regressive tax examples25
4.6The benefit principle27
4.7Equity and efficiency in tax enforcement27
4.8Tax evasion, tax avoidance and tax delinquency27
4.9Tax enforcement efficiency28
4.10Corruption28
5.1Oversight institutions31
Chapter 5: The social and economic implications of the various ways of raising government revenue32
5.2Taxation and Development33
5.3Impact of taxation on economic and social development33
5.4Role of taxes in economic development33
Chapter 6: Recommendations on other possible sources of revenue for Government.35
6.1Parliament can improve the management of mineral resources.35
6.2Other ways of raising revenue – compliance35
Chapter 7: Conclusion36
Bibliography38

Chapter 1: Introduction

1.1 Background
The purpose of this tool and guide is to equip Legislators, Civil Society Organizations and other interested stakeholders to fully understand how public revenues are raised by the Government, so as to make an informed analysis and judgement on how the Government can transparently and efficiently collect and effectively deploy resources towards government programmes. It will equip the stakeholders with the necessary stamina to confront the relevant arms of Government charged with the management of public resources.

Government revenues are governed by the Public Finance Management Act (Chapter 22:19) whose object is to “secure transparency, accountability and sound management of the revenues, expenditures, assets and liabilities of any entity comprising ministries, corporate bodies and public entities, constitutional entities and statutory funds”. The Treasury (Ministry of Finance) is mandated in terms of section 6 of the Act to control and manage public resources, managing the Consolidated Revenue Fund, determining the manner in which public resources shall be accounted for. Treasury can direct any relevant entity to collect on its behalf any monies due to the State. 1.2 Enabling Legislations

The Public Finance Management Act (Chapter 22:19) of 2009, gives overall authority to the Ministry of Finance to manage and control public resources. The Finance Bill (Act) gives authority for the collection and disbursement of government revenues, as determined each fiscal year, and has to be approved by Parliament after the presentation of the budget by the Minister of Finance. The overall enabling legislation that covers every subsidiary legislation is enshrined in the Constitution of Zimbabwe...
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