Tax evasion, political/public corruption and increased taxation: evidence from Zimbabwe

Purpose - The purpose of this paper is to examine the relationship between tax evasion, political/public corruption and increased taxation in Zimbabwe’s small and medium-sized enterprises (SMEs). Design/methodology/approach - The study as a descriptive survey used questionnaires and interviews as research instruments for collecting data. Findings - The findings revealed that most SMEs are no longer paying some form of taxes as expected since the Government of Zimbabwe through the Ministry of Finance and Reserve Bank of Zimbabwe introduced the 2% tax levy on all bank electronic transactions greater than US$10 from October 2018. Originality/value - The paper recommends that the government should create an independent anti-corruption committee with strong monitoring and regulatory mechanism so as to fight political/public corruption; hence, creating a paradigm of trust and confidence among different economic players. Lastly, the tax authorities should engage all the key economic players when crafting the country’s tax laws/rates so as to promote a sense of equity, equality and economic transparency among citizens.