Exploring Blockchain Technology Adoption for Tax Compliance in Zimbabwean Retail Sector: Opportunities, Challenges and Policy Implications

Abstract

As technological advancements reshape industries particularly in emerging economies, embracing novel technologies such as blockchain to enhance tax compliance is crucial for national revenue generation. This study sought to explore the potential opportunities and challenges of adopting blockchain technology for tax compliance in Zimbabwe’s retail sector. Grounded in the Stakeholder theory and Technology Acceptance Model, the study adopted the interpretivist philosophy. A qualitative research approach and an exploratory research design were used. Semi -structured interviews were conducted with thirteen (13) key participants purposively selected from Harare CBD. The participants included retail managers, internal auditors, IT/data experts and tax officials. The results revealed that current tax compliance practices are perceived as mixed where both manual verifications and automated systems are used. The participants highlighted that they face tax compliance hurdles such as complexity of tax regulations and lack of staff competence in tax matters. Participants expressed optimism about blockchain’s potential to improve transparency, enhancing auditing, reduce fraud and streamlining processes. However, challenges such as high implementation costs, regulatory uncertainties and resistance to change were cited as key adoption barriers. A strategic framework for adoption and integration of blockchain technology and artificial intelligence (AI) was developed. Recommendations for the retailers include adopting a phased implementation strategy, fostering collaborations with technology providers and enhancing leadership support to cultivate a culture of compliance.