Zimra approach bad for business

HARARE - Zimbabwe’s economic meltdown does not require a scattergun approach to the myriad of problems being currently experienced.

Sadly there appears no one, among the ruling elite, with a clue as to the serious ramifications of such an approach.

This view is strongly backed by the approach taken by the Zimbabwe Revenue Authority (Zimra) whose clampdown on the so-called “errant” tax payers has left many companies bleeding.

It is true that the government of President Robert Mugabe is broke but we don’t expect it to use a scattergun approach to collect revenue especially when Zimra appears to ignore the basic rights of those involved.

Zimra has billed companies astronomical invoices for tax ‘defaults’ in some cases ranging between $3 million and $46 million.

And the tax authorities are using ‘pay now and we talk later’ language which has seen companies driven into liquidation.

How does Gershom Pasi, the Zimra chief explain the sudden upsurge in tax defaults?

Where was Zimra when the tax arrears were ‘accumulating’?

No one is explaining this because the truth of the matter is that Zimra has nowhere to turn to as the revenue continues to dwindle.

The hard-pressed government is turning the other side as companies are being driven into liquidation.

Instead of creating an environment that boosts production Mugabe’s government continues to pile pressure on Pasi and Zimra who in turn, drive their tax dagger at the heart of productive but shaky companies.

The fiscal space is getting smaller each month and the sooner Mugabe and his colleagues in government realise this, the better.

You can’t keep milking a bleeding cow!

It is quite evident that each month government struggles to pay civil servants and could soon be forced to stagger salaries.

Recent warnings by the International Monetary Fund and World Bank should not be taken lightly.

Zimbabwe has less than two weeks import cover and worse could happen!

This is why something must give in, the centre can no longer hold.

The planned extension to the informal sector by Zimra in its blitz will not help the situation.

This will bring in more suffering and closures of the small business enterprises.

At worst, the proprietors of these business entities will conceal their revenue while at the same time turning their backs on the already struggling banks.

A run on the bank deposits would return Zimbabwe to the pre-2008 environment.

So we ask: is this what Zimra wants in its effort to increase dwindling revenue?

Comments (4)

Gersham Pasi like all leaders of parastatals ,is an active member of ZPF. All are clueless as to the revival of the economy they themselves destroyed.Whatever they do,they won't be able to rebuild the economy they have already destroyed. Mwari haapi simba rokuputsa nokuvaka pamunhu mumwe chete.Vokuputsa vachagara vari vekuputsa chete!!!!Clear results of typical RGM's economic policies or ideology. CHEATING WON'T PAY.

KUREMARA KWEPFUNGWA - 30 June 2014

people should paY TAX period!

lies - 1 July 2014

You cant solve a problem using the same ways and tools which were used when it was created. Zimbabwe needs innovation and creativeness, injection of of new blood.

Chokwadi - 1 July 2014

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five star - 2 July 2014

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