An Inquiry into causes of tax evasion in Zimbabwe. The City of Kwekwe informal sector experience
- Author
- Faranando, Lorindo
- Title
- An Inquiry into causes of tax evasion in Zimbabwe. The City of Kwekwe informal sector experience
- Abstract
- Taxes are seen as a reliable source of public revenue, but in the case of Zimbabwe and other developing countries, taxing the informal sector remains an uphill battle. The Zimbabwean government initiated the presumptive tax system in 2005 tailored to include the continuously growing informal sector in tax net. Despite the unofficial economy`s ongoing growth, the associated tax collections remain alarmingly low. Tax evasion and avoidance is highly common within this sector and compliance levels are below expectations. The study investigated the causes of tax evasion within the informal sector and the measures to curb the non-compliance problem. A mixed method approach was used in data collection and analysis. The study used a multi case study of five informal sector categories and a sample size of 50 participants. High tax rates, complexity of tax systems, comfort in numbers, lack of understanding on the were discovered to be causes of tax evasion and improved transparency on how tax collections are utilized, educational campaigns and use of popular media platforms in reaching the sector were the suggested measures of elevating tax compliance.
- Date
- June 2023
- Publisher
- BUSE
- Keywords
- Tax evasion,
- Informal sector,
- Supervisor
- Mr. Manyani,
- Item sets
- Department of Accountancy
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