HomeBusinessZimra to configure devices, eyes informal sector

Zimra to configure devices, eyes informal sector

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THE Zimbabwe Revenue Authority (Zimra) is set to launch a prudent way of configuring fiscal devices to record sales and other tax information on the read-only fiscal memory at the time of sale for use by tax authorities.

BY TARISAI MANDIZHA

The fiscalisation will occur by June to assist tax authorities in Value Added Tax (VAT) administration. Fiscalised devices are electronic gadgets which contain a “fiscal memory” which is permanently built into them to store tax information at the time of the sale.

Zimra Commissioner General Geshem Pasi said Zimra was in the process of redesigning and the new fiscalisation would also take care of the Small to Medium Enterprises (SMEs).

“We went to the drawing board and by the second quarter we will be launching the more prudent way of fiscalisation. The fiscalisation that we are now doing would also take care of the informal sector,” Pasi said.

He said Zimra was working with the ministries of Small and Medium Enterprises and Local Government, Public Works and National Housing to come up with ways to tax the informal sector.

“Let’s have incentives for the people to be fiscalised. We believe we have the solution that we are working on right now,” he said.

The Finance ministry and Zimra launched electronic fiscalised cash registers and fiscal memory devices in 2010 to plug leakages in value-added tax.
The system was designed in order for companies that had annual turnover of $240 000 and above to have the devices.

Failure to comply meant the companies had to pay a $400 fine or face imprisonment for a period not exceeding 12 months.

Companies have been arguing that they are not in a position to install the devices as the exercise required a lot of capital and would worsen their already dire financial position.

The government deadline for the fiscal devices to be installed was moved three times as the suppliers were failing to meet the demand.

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