Zimra launches blitz on traders

Zimra launches blitz on traders
Published: 31 August 2017 (718 Views)
THE Zimbabwe Revenue Authority (Zimra) has launched a massive blitz targeting all traders who continue to dodge their tax obligations by not installing fiscal devices and connecting them to its servers.

Fiscalisation became legally enforceable in Zimbabwe after Statutory Instrument 104 of 2010, was gazetted on June 8, 2010. Fiscal tax registers record financial transactions from businesses and transmit the data in real time to Zimra, and are therefore seen by Government as central to widening the revenue collection base.

In a statement yesterday, Zimra reminded all operators registered for Value Added Tax (VAT) purposes to acquire and install fiscal devices in tandem with the terms of VAT (Fiscalised Recording of Taxable Transactions) Regulations, 2010.

The regulations were published in SI 104 of 2010.

All businesses generating more than $60 000 per year – an average of $5 000 per month – are required to have electronic fiscal devices from January 1, 2017. Deadline for installing the devices and connecting them to the Zimra server is December 31, 2017.

"Operators who have not yet complied with these requirements are being reminded of the provisions of Statutory Instrument 153 0f 2011 dated 31st December 2011. The legislation makes it an offence if one fails to comply with the fiscalisation requirements by the due dates.

"Zimra has already commenced an exercise to follow up on all operators whose details show that they are yet to install fiscal devices.

"You are kindly urged to co-operate with the Zimra staff as they carry out their duties and respond promptly to communication regarding the fiscalisation requirements," said Zimra.

Operators that are found to be flouting the law after the deadline are liable to penalties of $25 per point of sale and for each day they remain in default. The penalty is applicable up to a maximum period of 181 days.

The law also says if any operator continues to side-step the law, they would be found guilty of an offence and would be liable to a fine not exceeding Level 7 or to imprisonment for a period not exceeding a year, or both such fine and imprisonment.

There have been concerns by businesses that it was difficult to acquire fiscal machines because of the high cost, which ranged between $1 200 and $1 700, largely due to lack of competition.

Zimra was approved as a fiscal device supplier on June 23, together with eight other companies. The national tax collector is selling its electronic cash registers for $350 and electronic fiscal printers for $500.

According to General Notice Number 307 published in the Government Gazette of June 23, 2017, other fiscal device suppliers announced are Just I.T; Global Horizons (Private) Limited; Rumikon Computers (Private) Limited; Microwarehouse (Private) Limited; Axis Solutions (Private) Limited; Cortech Solutions (Private) Limited; Fiscal Revenue Solutions (Private) Limited and Fiscal Support Services (Private) Limited.

The initial list published in the Government Gazette of July 29, 2011 had six approved suppliers.

In terms of the VAT (Fiscal Recording of Taxable Transactions) Regulations, 2010 (Statutory Instrument 104 of 2010), the approved firms are authorised to manufacture, supply or distribute fiscalised electronic tax registers, fiscalised electronic printers and fiscalised electronic signature devices.

However, there are concerns that some of the suppliers may have challenges with providing after sales services, in particular, for imported devices.

In the face of softening consumer demand and a constrained business environment for companies, VAT collections on local sales amounted to almost $324 million in the first six months of the year, against a target of $330,3 million.

VAT collections on local sales were only outperformed by individual tax which was $347 million in the first six months, underlining its centrality to revenue collection in the country.

In his annual budget review and outlook for 2017 statement in Parliament recently, Finance and Economic Development Minister Patrick Chinamasa said cumulative VAT collections amounted to $963,2 million last year, against a target of $955 million.

The figures represent a positive variance of $8,2 million. With expectations high that tax revenue would top $3,7 billion this year due to increased tax compliance, fiscal devices are expected to help plug revenue leakages and propel collections.

- the herald

Tags: Zimra, Traders, Blitz,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Tesla pfee in Zimbabwe

by Staff reporter | 20 October 2018 | 136 Views

Zimbabwean student use the old trick to get asylum in Ireland

by Staff reporter | 20 October 2018 | 153 Views

Joram Gumbo must leave office and face justice

by MDC Communications | 20 October 2018 | 132 Views

Zimbabwe teachers demand salaries in US$

by newzimbabwe | 20 October 2018 | 207 Views

'Chamisa's Alliance plotted a coup against Mnangagwa'

by Staff reporter | 20 October 2018 | 249 Views

Demand for Indian sex sweets rises

by Staff reporter | 20 October 2018 | 238 Views

'Chamisa won't be contested at congress' - no vacancy in MDC presidium

by Staff reporter | 20 October 2018 | 189 Views

Mthuli Ncube calls for political reforms

by Staff reporter | 20 October 2018 | 199 Views

Mnangagwa's minister exposed charging in USD refuses Bond notes

by Staff reporter | 20 October 2018 | 163 Views

Zimsec engages Deloitte And Touch over exam leaks

by Staff reporter | 20 October 2018 | 136 Views

The White Man who sent fear down Mugabe's spine

by Globe and Mail | 20 October 2018 | 127 Views

Human rights violations down in Zimbabwe

by Stephen Jakes | 20 October 2018 | 105 Views

Mliswa pleads with Finance minister to see importance of MPs vehicles

by Stephen Jakes | 20 October 2018 | 108 Views

Zimbabwe business are mercenaries out to loot the poor: MDC legislator

by Stephen Jakes | 20 October 2018 | 119 Views

Electric Tesla car causes stir on Zimbabwe social media

by Staff Reporter | 20 October 2018 | 121 Views

Zimbabwe army officers warned

by Staff reporter | 20 October 2018 | 145 Views

Biti savages Mthuli Ncube

by Staff reporter | 20 October 2018 | 113 Views

Zanu-PF backers justify army use of deadly force

by Staff reporter | 20 October 2018 | 120 Views

Zimbabwe tax system hit by low compliance levels

by Staff reporter | 20 October 2018 | 74 Views

Price controls, tinkering with the deck while the titanic is sinking

by Jacob Mafume, MDC National Spokesperson | 19 October 2018 | 233 Views

Man nearly killed over cooking oil

by Simbarashe Sithole | 19 October 2018 | 211 Views

Mnangagwa closing in on unscrupulous businesspeople

by Staff reporter | 19 October 2018 | 228 Views

Prophet sells congregant's vehicle

by Staff reporter | 19 October 2018 | 195 Views

Zanu-PF's Dexter Nduna confirmed Chegutu West MP

by Staff reporter | 19 October 2018 | 140 Views

Mnangagwa caps 1719 graduands

by Staff reporter | 19 October 2018 | 118 Views

ZCTU calls for resignation of Minister Gumbo

by Stephen Jakes | 19 October 2018 | 282 Views

Mnangagwa has to deliver and, urgently too

by Staff reporter | 19 October 2018 | 314 Views

Zanu-PF dictatorship, ideological dominance

by Vivid Gwede | 19 October 2018 | 236 Views

ZCTU, why spare Bulawayo council over rates hike

by Conway Tutani | 19 October 2018 | 217 Views

Motlanthe Commission risks playing into Zanu-PF agenda

by Staff reporter | 19 October 2018 | 229 Views

Councils challenged to generate own income

by Staff reporter | 19 October 2018 | 159 Views

Zimbabwe gender parity misses 50% mark, says Mohadi

by Staff reporter | 19 October 2018 | 119 Views

Zanu-PF official, sangoma jailed over pangolin scales

by Staff reporter | 19 October 2018 | 185 Views

Mliswa mocks Gender Commission

by Staff reporter | 19 October 2018 | 170 Views

Police harass senior Masvingo journalist

by Stephen Jakes | 19 October 2018 | 153 Views

Zimbabwe gold exports decline by 21%

by Staff reporter | 19 October 2018 | 176 Views