The Zimbabwe Revenue Authority has directed businesses that
are trading in multi-currencies to remit taxes in the same currency in which
the goods have been sold.
“Zimbabwe Revenue Authority has noticed that there are
businesses that are trading, withholding and collecting Value Added Tax, Pay As
You Earn, Capital Gains Tax and other taxes in multi-currencies,” said the
authority in a statement.
“Following this observation, Zimra has found it necessary
to clarify that these businesses should remit taxes in the specific currencies
in which they collect them without any conversion to RTGS, bond notes, local
point of sale and mobile money.”
A number of businesses, especially pharmacies and the
bilsing materials industry, are demanding payment in forex.
Some, however, trade the multi-currencies they get on the
parallel market and then settle their tax and other obligations using RTGS and
other electronic systems, making hefty profits in the process.
Government has urged Zimra to tighten its revenue
collection mechanisms to plug loopholes that have been abused by some
unscrupulous businesses.
Improved revenue collection is expected to boost Government
coffers and in turn funding to critical sectors such as social services and
infrastructure development. Zimra is owed over $2 billion in taxes by
individuals and organisations. Herald
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