‘Craft policies to curb smuggling, corruption’

THE Zimbabwe National Chamber of Commerce (ZNCC) yesterday called on government to craft effective measures to curb smuggling, corruption at State enterprises and parastatals (seps) and porousness at border posts in its 2018 National Budget statement.

BY VENERANDA LANGA

ZNCC chief executive officer Christopher Mugaga made the call when he appeared before the David Chapfika-led Parliamentary Portfolio Committee on Finance to make submissions on the 2018 budget, where he said smuggling of goods was killing formal business in the country with 50% of second-hand tyres sold on the market being smuggled into the country.

“No matter how we continue to incentivise exporters, they continue to be outweighed by those that are smuggling, because after the introduction of the $300 million bond notes we still see a lot of them in the informal economy, and even if you go to Musina the bond note is trusted more than the rand” he said.

“For example, second-hand tyres are not allowed into the country, but the Zimbabwean market consumes 1,3 million tyres annually and out of that figure the consumption of second-hand tyres that are smuggled in is 50%.”

Mugaga said the Zimbabwe Revenue Authority (Zimra) also needs to find other models of broadening their revenue base instead of just garnishing accounts of big businesses.

“There is a culture where if a person wins a ZNCC award, the next morning Zimra is at their door. Their penalty loading system is 100%, which is not proper because if you look at other models like South Africa we are talking of 23%. We feel Zimra should be lenient,” Mugaga said.

He slammed the current practice where informal traders were selling wares like groceries at shops’ entrances at a cheaper price, in the process causing littering.

Mugaga‘s deputy, Tamuka Macheka, said foreign currency challenges were crippling business, adding something must be done to curb porousness at border posts, where government was losing a lot of revenue through smuggling.

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7 Comments

  1. I dont know where this Mugaga has been living. There are enough laws in the country to do away, or at least limit, corruption. The problem is in the enforcement. If you see a policeman accepting a bribe, who do you think is going to arrest him? The garnishing which is being done by ZIMRA is through some desperate few who still want things to work, otherwise the rest are involved in the smuggling that you are talking about. Enforcement of laws is what is needed, not new legislation.

  2. Alliance For The Peoples Agenda

    Vote for APA to deal with corruption

  3. Mugaga & Macheka – what you are calling the “government” is the very same mafia running these smuggling rings, You see, it started of with “taking back” (aka stealing) the farms and police were asked to look the other way. Now it has spread to every aspect of society sinking our lifestyle, integrity, aspiration and humanism into a very deep abyss. Can’t you see the in-fighting within the rural party? Do you think it’s all about improving the citizens’ lives? Of course not. The idea is to loot and murder whilst pretending to be a Mr Nice Guy. Unfortunately we’re running out of material to steal. Open your eyes!

  4. well put mr mgaga but i disagree with you on the hawkers issue

  5. A thief will never craft laws to trap itself.

  6. Zimbabwe needs both new political and business leaders! a few weeks ago the business community described the meeting with the president as ‘fruitful’, really? The culture of dependence on a government that’s know to not act in sincerity to the cries of the community is sickening to say the least. A whole New Zimbabwe is must!

  7. mgaga we have a political problem that is where all zimbabwean problem is so all that is nonsense

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