Stakeholders in Gweru are urging authorities to ensure that taxes collected from the informal economy are utilized to enhance public health services.
This appeal was made during an Open Policy Discourse organized by the Vendors Initiative for Social and Economic Transformation (VISET) in collaboration with the Gweru Residents and Ratepayers Association (GRRA) last week.
Dr. Virginia Makanza, a researcher at Midlands State University and the Centre for Public Policy and Devolution, emphasized that tax compliance is closely linked to tangible service delivery.
She stated, “What matters most to communities is not just how much revenue is collected, but how effectively and promptly it is converted into visible services for the people.”
Dr. Makanza highlighted that Zimbabwe’s health sector remains under significant strain despite increased budget allocations.
She pointed out that persistent shortages of medications, equipment, and skilled personnel continue to restrict access to quality healthcare.
Additionally, she expressed concern about the country’s heavy reliance on donor funding, which highlights the importance of strengthening domestic health financing.
Participants in the discourse underscored the need for improved public finance management and transparency to rebuild trust between taxpayers and authorities.
Fadzai Kanyai, a programs officer with GRRA, stressed that engagement and accountability are crucial 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 stated.
The stakeholders also discussed alternative health financing options, including the proposed National Health Insurance Scheme, the ring-fencing of sin taxes, mining royalties, and social bonds.
Samuel Wadzanai, the Executive Director of VISET, emphasized the importance of inclusive engagement to ensure that taxation supports equitable and sustainable health service delivery.
Meanwhile, officials from the Zimbabwe Revenue Authority (ZIMRA) took the opportunity to explain tax obligations to informal traders, emphasizing the importance of voluntary compliance through education and a simplified registration process under the Tax and Revenue Management System (TARMS).
“Compliance improves when people understand the system and the benefits that come with formalization,” said ZIMRA official Prince Mafunga.
The stakeholders’ call for improved health services funded by tax revenue serves as a timely reminder of the need for transparency and accountability in public finance management.
