MARTIN MAWAYA
GWERU–Stakeholders in Gweru have urged authorities to ensure that taxes collected from the informal economy translate into visible improvements in public health services, warning that compliance hinges on tangible service delivery.
The call was made on Wednesday during an Open Policy Discourse organised by the Vendors Initiative for Social and Economic Transformation (VISET) in collaboration with the Gweru Residents and Ratepayers Association (GRRA).
The indaba brought together informal traders, residents, civil society organisations, local authorities and central government departments to discuss informal economy taxation and public finance management in health service delivery.
Presenting on health financing and the 2026 National Budget, Midlands State University and Centre for Public Policy and Devolution researcher Dr. Virginia Makanza said Zimbabwe’s health sector remained under severe strain despite increased budgetary allocations.
“The ZiG30.4 billion allocated in 2026 is largely about stabilizing a system under pressure; rehabilitating hospitals, upgrading equipment and expanding ambulance services,” Makanza said.
“However, persistent shortages of drugs, equipment and skilled personnel continue to limit access to quality healthcare.”
She added that delayed disbursements and heavy reliance on donor funding, estimated at about US$280 million, raised sustainability concerns and underscored the need to strengthen domestic health financing.
“What matters most to communities is not just how much revenue is collected, but how effectively and timeously it is converted into services people can see,” Makanza said.
Participants stressed that improved public finance management and transparency were critical to rebuilding trust between taxpayers and authorities, particularly within the informal economy.
GRRA programmes officer Fadzai Kanyai said engagement and accountability were essential for sustaining compliance.
“People want to understand how their money is being used and to see their priorities reflected in budgets. That is what builds confidence,” Kanyai said.
The dialogue also explored alternative health financing options, including the planned National Health Insurance Scheme expected in June 2026, ring-fencing of sin taxes, mining royalties and social bonds.
VISET Executive Director Samuel Wadzanai said the discussions reinforced the importance of inclusive engagement to ensure taxation supports equitable and sustainable health service delivery.
Meanwhile, Zimbabwe Revenue Authority (Zimra) officials used the platform to demystify tax obligations for informal traders, emphasising voluntary compliance through education and simplified registration under the Tax and Revenue Management System (TARMS).
“Compliance improves when people understand the system and the benefits that come with formalisation,” said Zimra official Prince Mafunga.
Zimra also briefed participants on newly introduced taxes, urging early engagement to avoid penalties.
