PHILLIMON MHLANGA
Zimbabwe’s frustrated business leaders have engaged the Zimbabwe Revenue Authority (ZIMRA) imploring the country’s tax collection agency to revamp its tax policies, which they said were bleeding the already ailing companies.
Business leaders met with ZIMRA leadership led by commissioner general Faith Mazani on Tuesday this week, a few days after government introduced a controversial tax regime. The meeting which was held in the capital was organised by the Zimbabwe National Chamber of Commerce (ZNCC) where businesses presented an avalanche of tax issues which they want resolved.
Business raised fears on a number of issues they were not happy with, including the contentious whistle blowers issue who were targeting companies, unrealistic payment plans, ZIMRA system which is in a shambles, tax clearance certificates, penalties and withholding tax on Value Added Tax (VAT).
They said ZIMRA had embarked on long and uncoordinated tax audits.
ZIMRA intensified tax audits as part of efforts to boost revenue collections. Government, which has been heavily reliant on tax, has been struggling to pay its strong 350 000 workforce, forcing former Finance minister Patrick Chinamasa to stagger salary payments.
ZNCC Harare Branch chairperson, Mike Kamungeremu, also indicated that ZIMRA needed to address the issue of delayed tax refunds.
“Business is bleeding,” Kamungeremu said.
“We have people who have turned themselves into professional whistle blowers. They are now career whistle blowers, who target companies’ officials, pay some money to get information which they will bring to ZIMRA. This is a big problem for business.”
He added: “There are also big issues with tax clearance certificate. These are taking long to be issued by ZIMRA. Besides, we have issues with VAT refunds. It’s a burning issue because the backlog is huge. After some audits, ZIMRA is coming with unrealistic payment plans, which are squeezing business.” Steve Matoushaya, a tax director at advisory firm, KPMG Zimbabwe Chartered Accountants, weighed in saying “Do something with the whistleblower issue because this is becoming a serious cost to business.” Mazani admitted there were problems at the tax authority but she said they were working hard to change the course.
“(The issue of whistleblowers) is an issue that is also exposing us (ZIMRA),” Mazani said.
“True, we know that these so called whistle blowers are targeting big companies, parastatals. They approach officers to get information. But, the reason why these whistleblower are taking advantage of you is because business are not their obligations.”
