"The strategy speaks to the Government's policy direction of encouraging compliance and widening the tax net," he said. "Rationalising the tax system also supports this objective by reducing compliance costs, while digitisation makes it easier for taxpayers to comply through digital platforms. "Should inflation rise or the exchange rate weaken, investors would demand higher yields to compensate for greater risk," Nyazema said. "That would increase the Government's borrowing costs and reduce demand for longer-dated securities at auction. "However, the authorities have demonstrated encouraging commitment to reducing budget deficits and containing public expenditure.