The Zimbabwe Revenue Authority (Zimra) is working on a tax management system to interface old and new fiscal registers so the system runs effectively.
BY VICTORIA MTOMBA
Zimra Commissioner-General Gershem Pasi told NewsDay recently that there was no interface between the old and new systems and a committee has been established to ensure that the fiscalised regime works well.
“Now with the tax management system, we are putting in place, we are building an interface with the old fiscal device so that they can speak to the new system. We are using new technology and have formed a technical committee, which will iron out any issues so that nobody is left out,”he said.
When fiscalised registers were introduced, only two companies were supplying the devices and at some point failed to meet the deadline. This resulted in the deadline to comply with the installation of the registers being postponed a number of times.
Fiscal registers are electronic devices used to calculate financial transactions. Fiscal registers were introduced in 2011 to ensure that the tax collector was not prejudiced by retailers in tax remittance.
Pasi said the authority has so far begun taxing the transport sector. During the International Conference on Aids STIs in Africa in December, 70 taxis had fiscalised machines installed.
“There are certain legislative issues that need to be tackled by the Minister of Transport so the system can be rolled out on a large scale,” he said.
Zimbabwe’s economy is now dominated by the informal sector due to closure of thousands of companies throughout the country. Over 4 000 companies have closed between 2011 to date due to viability challenges, resulting in the tax base shrinking.
Analysts say, the taxman has to put in place systems that will allow the taxing of businesses in the informal economy—the country’s biggest employer accounting for over 90% of employment.
Revenue going into Treasury coffers continues to decline, a reflection of the harsh economic environment that has spawned massive retrenchments and company closures.
Statistics from the Zimra showed that revenue collected was $878,22 million in the third quarter ending September 30 against a target of $964 million, as the economic environment took a toll on revenue heads.