Optimising tax collection Mechanisms. A critical analysis of the Zimbabwe Revenue Authority, Bulawayo, Zimbabwe

Tax compliance in Zimbabwe's informal sector is hindered by a lack of transparency and understanding of tax obligations among small business owners. This study investigated the presumptive tax compliance challenges faced by informal sector businesses and explored potential enhancements to collection mechanisms by the Zimbabwe Revenue Authority (ZIMRA). Utilizing a qualitative research approach, data was gathered through interviews with 20 transport operators and small business owners. The findings revealed that simplifying tax compliance processes, enhancing taxpayer education, tailoring tax policies to suit informal sector characteristics, and improving enforcement strategies could significantly boost compliance rates. The study emphasizes the necessity for ZIMRA to adopt user-friendly digital platforms for tax registration, conduct community workshops to raise awareness, and implement tiered tax systems that align with the income levels of informal businesses. Recommendations include fostering a cooperative relationship between tax authorities and taxpayers to mitigate the adversarial climate and ensure sustainable revenue generation from the informal sector.