HomeBusiness DigestZimra supplies 9 000 fiscal gadgets

Zimra supplies 9 000 fiscal gadgets

ZIMBABWE Revenue Authority (Zimra) has supplied more than 9 000 fiscal gadgets to its clients but the institution faces challenges in supplying more devices due to foreign currency shortages.

By Wongai Zhangazha

Fiscalised gadgets are electronic devices which contain a fiscal memory. These are fiscalised electronic registers — also referred to as electronic tax registers, fiscalised printers or electronic signature devices.

The fiscal memory is permanently built into a fiscalised device to store tax information at the time of the sale.

In an interview this week on a wide range of issues, Zimra Commissioner-General Faith Mazani said the revenue body is engaging the Ministry of Finance and the Reserve Bank of Zimbabwe to mitigate the foreign currency challenges.

“A total of 9 032 clients have acquired and installed fiscal devices to date and Zimra was appointed as one of the suppliers of the fiscal gadgets,” she said.

“There are, however, challenges on supply of devices due to foreign currency shortages. Engagements between Zimra, the Ministry of Finance and the Reserve Bank of Zimbabwe are underway to mitigate the challenges.”

Mazani said Zimra has registered informal sector businesses as the economy has become largely informal.

“Strategies to harness the informal sector were embarked on in 2017 through joint workshops with the Ministry of Small and Medium Enterprises (SMEs),” she said.

“A total of 19 000 new clients were registered through this exercise. The contribution from this sector is expected to improve as the businesses grow. Going forward, the authority will intensify engagements and registration of the small and medium enterprises to improve their contribution to the economy.”

While some business leaders and investors have bemoaned that the country has one of the highest tax regimes in the region, Mazani disagrees, saying the taxes levied by Zimra were lower than some countries on the continent.

“The Zimbabwean tax rates are comparable to other countries in the region. For instance, Zimbabwe’s rate of Corporate Tax of 25% is comparable to Zambia’s 35%, South Africa’s 28% and Nigeria’s 30%. What makes Zimbabwe’s situation unique is the level of non-compliance, which is very high and has an effect of burdening the few that are compliant.
This is why strategies to increase compliance are being implemented with a view to achieve an equitable tax system,” Mazani said.

As the Commissioner-General, Mazani said she will strive to fight corruption and reduce the tax debt.

“My major focus is to have a vibrant revenue authority that is client-driven and benchmarks against other revenue authorities for best practice in tax and customs administration. I will intensify strategies to increase revenue collection, curb corruption and reduce the tax debt,” Mazani said.

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