Call to extend tax registers deadline

the tax registers as a way of enhancing VAT collection. The legislation was in July this year extended to cover registered operators in categories A, B and D with an annual turnover of US$240 000.
The deadline for installing the devices has been deferred numerous times following representations by operators over the high costs of the devices.
The new deadline has been set for end of this year. Zimbabwe National Chamber of Commerce vice president Mr Davison Norupiri said most businesses were failing to get funds to finance the implementation of the devices.
He said because of subdued economic activity, most businesses were accessing funds to fund operational costs only.
“Government should defer implementation of this noble policy until 2015, taking into account of case studies of other countries that have gone the same route.
“We also urge the Minister of Finance to set aside funds and roll out a Government-sponsored fiscalised tax register programme because business cannot afford the 50 percent it is asked to foot,” he said.
Following representations by players, Government undertook to sponsor 50 percent of the cost of acquisition of the fiscal devices to lower the burden on retailers.
In his Mid-Term Fiscal Policy Review Statement, Finance Minister Tendai Biti said at least 66 percent of registered operators in category C had fully fiscalised their operations while 6 percent were at various stages of fiscalisation.
He also said 28 percent were yet to commence the fiscalisation process.
Zimra has since started penalising firms US$25 for every till point operating without the registers.
Fiscalised tax registers record sales at the point of sale as each register is fixed with a memory card that records fiscal data used by Zimra to collect taxes.
In the new system, ZIMRA would have access to view the flow of revenue in business enterprises.
The Ministry of Finance contends that Government was being prejudiced of revenue under the old system.
Revenue collection is expected to increase by 20 percent once all stakeholders have adopted the fiscalised tax devices.
South Africa, Tanzania and Kenya are some of the countries in Africa that have already adopted the new tax management system.-New Ziana