Is Value Added Withholding Tax effective as a tool of enhancing VAT and total revenue generation?
VAT is a key revenue generating tax in Zimbabwe and all African states. It is also a key source of financing of the African countries budget. VAT revenues have an essential role in budgetary policymaking, and vast sums of VAT are not being collected each year due to issues such as ineffective administration and tax evasion. The failure to collect all VAT revenue by revenue authorities brings to the forefront the question of the reform of the VAT system.
The research will address the following questions:
- What are the implications of Value-Added Withholding Tax policy on taxpayers and tax administrators?
- What can be done to improve Value Added Withholding Tax administration in order to continuously improve VAT revenue collection?