DESPITE the Zimbabwe Revenue Authority (ZIMRA)’s aggression in revenue collection, defaults in tax payment have worsened, the tax authority has said.

In its first quarter revenue performance report, ZIMRA said tax indiscipline has become rampant, with local firms becoming perennial tax dodgers and increasingly non-compliant with the country’s tax laws.

ZIMRA said although bigger industry players folded due to economic hardships, the majority of new companies that had emerged or survived have shown a penchant for tax default.

“Some companies have folded up or considerably downsized but the new economic players who have emerged have not been tax compliant. Some of the new companies are actually bigger than the companies which they replaced but they just do not pay taxes,” said ZIMRA.

But tax expert, Peter Mugodi, said ZIMRA should scrap the 100 percent penalty to encourage companies to honour their tax obligations.