The Zimbabwe Revenue Authority (ZIMRA) has announced a major policy reversal on its controversial plan to require businesses to obtain new tax clearance certificates every month, following a strong pushback from the private sector. In a dramatic shift, the authority now proposes certificates with extended validity periods of up to six months for certain companies, a move aimed at easing administrative pressures on businesses while maintaining compliance.
The initial policy, outlined in Public Notice 69 of 2025, mandated that ITF263 tax clearance certificates for the 2026 period would be valid for only one month for all taxpayers. ZIMRA further warned that any lapse in compliance would lead to the suspension of subsequent month’s certificates. This measure triggered immediate alarm among industry bodies, who warned that it could disrupt operations, increase costs, and create uncertainty across sectors.
The Confederation of Zimbabwe Industries (CZI) spearheaded opposition to the monthly renewal requirement. In formal communications, the organisation argued that the rule would impose undue administrative burdens on businesses of all sizes and could negatively affect tendering processes, banking, and operational continuity.
In response, ZIMRA Commissioner for Domestic Taxes, Misheck Govha, issued a letter on 19 December 2025 signaling a softer approach. While emphasizing the importance of compliance, Govha acknowledged the concerns raised by businesses and indicated that a more flexible, phased approach was being considered.
“In light of the concerns raised, ZIMRA remains committed to ensuring that compliance measures are practical, efficient, and aligned with broader economic objectives,” Govha wrote. He confirmed that the authority is now exploring a tiered, transitional framework that adjusts certificate validity periods according to the size and scale of the taxpayer, marking a clear departure from the original one-size-fits-all monthly requirement.
ZIMRA Revises Tax Clearance Policy Following Business Backlash
Under the proposed system, large companies could be issued tax clearance certificates valid for six months, while medium and small businesses, including those participating in tenders, would receive certificates valid for three months. This represents a significant concession to industry demands, offering greater predictability and reducing the administrative burden of monthly renewals.
However, Govha made it clear that one aspect of the original policy would remain unchanged. Taxpayers submitting NIL returns, deemed not to be trading, would still be required to seek specific authorisation from ZIMRA to obtain a tax clearance certificate. “With respect to NIL returns, the position outlined in Public Notice No. 69 of 2025 remains unchanged,” he stated.
The revised policy is described by ZIMRA as a transitional measure aimed at providing operational stability while continuing consultations with stakeholders. The authority emphasized that the phased approach would allow businesses to adjust while maintaining compliance and revenue mobilisation.
Despite the policy climbdown, some business leaders remain cautious. Industry insiders argue that even three-month validity periods may still be overly burdensome, particularly for small enterprises and tender participants who rely on continuous certification for banking and contractual purposes.
Analysts note that ZIMRA’s U-turn highlights the tension between regulatory compliance and business continuity, particularly in a challenging economic environment. While the tax authority’s goal remains revenue collection and compliance, stakeholders insist that policies must be practical and considerate of operational realities.
Govha concluded his letter with a reaffirmation of ZIMRA’s commitment to dialogue and collaboration. “We are committed to developing a framework that supports voluntary compliance, business continuity, and effective revenue mobilisation,” he said, signalling further consultations with industry bodies before the final regulations are implemented.
The debate underscores the influential role of private sector advocacy in shaping tax policy. It also demonstrates ZIMRA’s willingness to balance strict compliance measures with the practical needs of the business community, an approach seen as vital to maintaining economic stability and encouraging investment.
As Zimbabwe moves closer to the 2026 tax period, all eyes will remain on the finalised tax clearance framework. Businesses, industry bodies, and regulators will need to collaborate closely to ensure that compliance objectives are met without stifling commercial activity or creating avoidable administrative hurdles.
In the meantime, ZIMRA’s revised stance represents a significant concession to the private sector, reflecting both the authority’s responsiveness and the importance of maintaining functional partnerships between government and business in sustaining the nation’s economic framework.
Source- iHarare
