Efficacy of the Tax and Revenue Management System (TaRMS) On Revenue Collection: A National Study of the Zimbabwe Revenue Authority (ZIMRA)

Abstract

The digitisation of tax administration systems has emerged as a critical strategy for improving domestic resource mobilisation in developing economies. This study examines the efficacy of the Tax and Revenue Management System (TaRMS) on revenue collection across the Zimbabwe Revenue Authority (ZIMRA), adopting a national scope that encompasses ZIMRA’s principal regional offices. Guided by the Technology Acceptance Model (TAM), the Diffusion of Innovation (DOI) Theory, Institutional Theory, and the Theory of Planned Behaviour (TPB), the research adopts a longitudinal mixed-methods design, combining quantitative secondary data analysis spanning 2021–2024 with qualitative insights obtained from structured interviews and questionnaires administered to ZIMRA officials and registered taxpayers across multiple regions. The study’s objectives were to assess TaRMS’s national impact on taxpayer registration and compliance; to evaluate the system’s effect on on-time filing and return submission rates; to determine TaRMS’s influence on overall revenue collection performance while accounting for external macroeconomic and policy variables; and to identify challenges impeding optimal system utilisation. Findings indicate that TaRMS has significantly improved key revenue administration metrics nationally: active taxpayer registrations increased by 153%, on-time filing rates rose from 13.94% to 38.07%, return submission rates improved from 29.41% to 62.69%, and revenue from new taxpayers grew by 238% between 2023 and 2024. Longitudinal analysis further confirms that these gains are robust to adjustments for external factors including Zimbabwe’s economic stabilisation trajectory, multi-currency policy reforms, and broader fiscal policy changes over the study period. However, the study also identifies persistent challenges including digital literacy gaps, intermittent system downtimes during phased rollouts, and the continued dominance of Zimbabwe’s informal economy. The study recommends targeted taxpayer education programmes, robust technical infrastructure investment, formal sector expansion strategies, and complementary policy interventions to maximise TaRMS’s revenue collection potential. These findings contribute to the broader literature on e-governance, tax administration technology, and public financial management in Sub-Saharan Africa.