ABSTRACT
This paper assesses the design of Zimbabwe’s minibus taxi presumptive taxes that were first implemented in 2005 and evaluates them in terms of administrative effectiveness, equity and economic efficiency. The implications of these factors on tax compliance are also analysed. A mixed-methods approach was used where quantitative data were complemented by qualitative interviews with taxi operators and key informants from the country’s tax authority. The results suggest that presumptive taxes were poorly designed and administered with many operators going untaxed. The ‘informal taxes’ (bribes and ‘fees’) levied by corrupt officials, ‘committees’ and touts also resulted in taxes that did not promote equity or efficiency. Despite the numerous challenges identified, the article highlights key lessons for countries that are also trying to tax minibus taxis such as the importance of negotiating with taxi associations around taxation and the encouragement of quasi-voluntary compliance through the implementation of well-researched turnover-based presumptive taxes.
Disclosure statement
No potential conflict of interest was reported by the author.
ORCID
Godwin Dube http://orcid.org/0000-0002-4164-9215