New Zimbabwe.com

Zimra misses target, says companies not paying tax

THE Zimbabwe Revenue Authority (Zimra) has said it is failing to meet its mandate because industry and business are dodging on paying tax.
Zimra has already missed its collections for the first quarter of 2016 as net revenue collections for that period stood at $724, 8 million, 15, 9 % below the $861, 83 million target.
The net collections were 9, 75% lower than those of the first quarter of 2015.
Zimra acting commissioner-general Happias Kuzvinzwa told the Zimbabwe National Chamber of Commerce annual congress in Victoria Falls recently that low revenue inflows into Treasury were partly due to high incidence of non-compliance in the payment of tax by some corporates.
He challenged the business community to create a culture of compliance to avoid penalties.
“Business should avoid being a magnate for penalties by failing to comply. Let’s be moral and just for the country. Some businesses are honest and pay while some get away with it,” he said.
“There is a need to inculcate a culture of compliance. People come to my office asking not to pay saying they have no money but I say we need to create a culture of compliance. Let’s be true to ourselves and share the tax burden.”
Kuzvinzwa, who assumed office after the suspension of Geshom Pasi, said businesses are only conduits and should remit to the government all monies collected in tax.
He said some were ‘creating roadblocks’ along the way.
Kuzvinzva encouraged businesses to come forward and negotiate payment plans.
“Don’t sink your business through debt. Zimra’s door is open for negotiations but you should commit to pay those outstanding debts if you come. Garnishing accounts is only a last resort.”
Kuzvinzva said paying tax dignifies a country and is a sign of patriotism for businesses.
He said some businesses were including tax as part of their profits, which he said was equal to cheating themselves.
Kuzvinzva said Zimra holds a critical position in the country as it collects revenue that services the country, calling on the business sector to seek joint ventures to build infrastructure and develop the economy.Advertisement