Covid-19 Lockdown Measures and Presumptive Taxation in Zimbabwe

Abstract

This desktop study evaluated the effects of lockdown measures on Zimbabwe's presumed taxation. As a result of the COVID-19-induced health-care crisis, the Zimbabwean government, like many countries around the world, imposed a lockdown. This has diverse effects on various tax systems. This article examined the literature regarding the effects of lockdown measures on Zimbabwe's presumptive taxation. The study’s methodology differed from the traditional approach to research as it focused more on literature review and the findings, conclusions and recommendations were based on the reviewed literature. The results showed that COVID-19-induced lockdown restrictions affected ZIMRA's presumptive tax collection and the livelihood of informal merchants. One of the factors that aggravated the harm was the short notice in declaring lockdown enforcement. According to the findings, it will take some time for presumptive tax collections to recover. To hasten this process, the Zimbabwean government must provide aid to small business owners to enable them resume operations. In addition, there is an urgent need to educate informal merchants about health risks such as COVID-19, and support from the formal sector and international donors should ensure that informal traders such as vegetable vendors, cobblers, and transport operators have protective equipment as recommended by medical experts so that they can continue to conduct business safely and pay their presumptive taxes in time.