The Informal Sector, the “implicit” Social Contract, the Willingness to Pay Taxes and Tax Compliance in Zimbabwe

Abstract The growth of the informal sector in African countries has largely been viewed as an escape from regulation and deliberate intention to avoid paying taxes these views have widely popularised, ignoring significant details disadvantage realistic tax policy design. Zimbabwe adopted a presumptive system for various categories enlarge base increase revenues mobilised. However, not generated revenue. Tax compliance often studied structure design, deterrence model perspective capacity limitations without adequate attention morale. morale can be denoted through peer effect behaviour other taxpayers, fulfilment psychological social contract, transparency accountability use well stakeholder communication, built on mutual trust respect. In light dimensions, it is evident that never divorced intrinsic motivation pay taxes. inextricable link, between evasion, morale, motivates this study. While previous studies applied single method research approaches, study sequential exploratory mixed combining both qualitative quantitative (through document reviews, semi-structured interviews questionnaires) order bring balanced view. found out was strong driver evasion non-tax sector.