ERNST & Young (EY) Zimbabwe will hold a tax seminar on Wednesday next week where the issues of paying tax and the implications of the mid-term fiscal policy will come under the spotlight.
Finance minister Patrick Chinamasa introduced a raft of taxes when he presented the mid-term fiscal policy in September. Some of the measures include an upward review of fuel tax, employee benefits, meat, detergents and introduced excise duty on airtime.
EY associate director (tax advisory services), Rameck Masaire, told businessdigest that the meeting will focus on paying tax in an economy with “a shrinking resource base”
The economy has been characterised by a debilitating liquidity crunch, closure of companies and job losses which have severely depleted the government’s coffers, resulting in their failure to pay civil servants on scheduled dates.
The Zimbabwe Revenue Authority has intensified raids on companies, garnishing the accounts of several firms as it came under growing pressure to increase revenue collection in the face of a mounting liquidity crunch amid growing operating expenditure dominated by a ballooning wage bill.
“We need to share ideas with taxpayers at large on how they can effectively manage their national obligation to provide increasingly to this onerous demand” Masaire said.
Masaire said they expect between 150 to 200 delegates at the seminar.