Precipitants of tax evasion in the Informal Sector in Zimbabwe: A case study of BulawayoMetropolitan Province.

Abstract

The purpose of this article was to investigate tax evasion in Zimbabwe's informal economy and 
identify the underlying causes. Questionnaires and in-person interviews were the backbone of this study's data 
collection strategy. For this study, we surveyed six officials from the Zimbabwe Revenue Authority (ZIMRA) 
and four from the Bulawayo City Council (BCC) to learn more about the challenges that the informal sector 
faces when it comes to paying taxes. The data was examined using SPSS version 22 from the 108 returned 
questionnaires out of 120 that were sent to proprietors of hair salons and flea markets. Publicized in the report 
were the following factors: high tax rates; economic performance; government opaqueness regarding the use 
of tax funds; and unscrupulous tax administrators. The government should simplify the tax system, lower tax 
rates, educate taxpayers more, deal with dishonest ZIMRA officials, and reward law-abiding citizens with tax 
breaks. The informal economy and every economic actor that deals with informal merchants in any way should 
follow the government's tax administration plan.