eBusiness Weekly
Kudakwashe Mhundwa
HARARE – The Zimbabwe Revenue Authority (Zimra) is in 2019, expected to invest $13 million towards automation and modernization of operations with the aim of reducing revenue leakages, Secretary for Finance and Economic Development George Guvamatanga has said.
This comes as Government is considering giving the authority absolute powers to descend heavily on tax dodging companies so as to recover the outstanding $4,5 billion in revenue leakages which had a detrimental effect as it compelled Government to issue Treasury bills and borrowing to finance budget deficit.
“The Zimbabwe Revenue Authority will also invest $13 million during 2019, towards automation and modernization of its operations in order to strengthen its online services to the public as well as reduce revenue leakages.
“To fully benefit from the advances in technology, Government is upgrading its public digital infrastructure essential in providing public service which is easier, quicker and more convenient for people to use at lower costs than current methods,” said Mr Guvamatanga
Recently, Zimra commissioner general Ms Faith Mazani said the national tax collector was unable to meaningfully collect revenue due to the absence of instruments that compel taxpayers to honour their obligations.
Zimra has only resorted to garnishing accounts of defaulting taxpayers and imposing hefty penalties, but cannot do anything if the defaulters close their accounts.
Statutory Instrument 97 of 2013 on Revenue Authority (Civil Penalty for Late Submission of Returns) Regulations, 2013, provides for penalties to be charged on defaulting taxpayers.
Currently, Zimra is inviting companies that are not tax compliant to take advantage of the “voluntary disclosure” window and regularize their operations on a “no questions asked” basis.
Companies and individuals that continue to operate outside the tax net by December 31 will be dealt with.
