CZR calls members to order over exchange rate

Mthabisi Tshuma, Business Correspondent
THE Confederation of Zimbabwe Retailers (CZR) has called on its members to comply with the weekly Forex Auction Trading System rates to buttress Government’s efforts to achieve price stability.

The call follows concern that some businesses keep pegging prices on black market rates of up to US$1:$100. Some shops are actually displaying their own speculative rates while others are using a three-tier pricing system for those buying in forex, cash in Zimbabwe dollar and electronic transactions.

Government introduced the weekly Foreign Currency Auction Trading System in June, replacing the fixed interbank market rate of US$1:$25. The model has scored milestones with wider market endorsement. Industry and commerce executives have hailed the forex auction for improving transparency and efficiency, which has assisted businesses to access forex for raw materials.

Under the auction system, successful bidders pay what they bid, regardless of whether that is higher or lower than the average, with the highest bidder getting the first allocation.

The local dollar continues to gain ground with the forex rate standing at US$1:$81.3 this week from 81.4 last week.

Confederation of Zimbabwe Retailers (CZR) president, Mr Denford Mutashu, has since directed their members to follow the official forex exchange rate.

“The Confederation of Zimbabwe Retailers (CZR) wishes to remind retail sector players of the existence of legal requirements that compels them to comply with the newly introduced foreign currency exchange rate system,” he said in a statement.

“It is CZR’s humble submission that business should support the forex auction system through responsible pricing and compliance.”

Mr Mutashu said prices should be pegged in both local and foreign currency and should at all times be displayed for easy convenience for the customers.

“Prices should be pegged in both local and foreign currency with clear exchange rate boards displayed in each store,” he said.

“The customer receipt should bear the currency in which the transaction has taken place.

“We have been made aware of some distortions currently happening in the market and it is critical that sector players adhere to the regulations set out by the Government.”

Mr Mutashu also said there was a need to ensure adequate supply of fiscalised machines.

Fiscalisation refers to configuring of fiscal devices to enable them to record sales and other tax information on the read only fiscal memory at the time of sale for use by Zimra in Value Added Tax (VAT) administration. Fiscalisation is done by VAT registered operators (with sales turnover of 1 million ZWL) in categories “A”, “B” and “D” which are eligible for Fiscalisation as outlined in SI 104 of 2010 as read with SI 148 of 2016 and SI 153 of 2016.

“It is, therefore, critical for the Government to address systems and software compatibility while availability of fiscalised machines remains a critical necessity,” said Mr Mutashu. “There is also a need to increase suppliers of fiscalised machines and the current number remains few while those supplying in some instances have failed to avail spare parts for the machines.”

There has also been a concern that the available fiscalised machines are also not compatible. CZR said it has collected the majority of sector views on the matter and is engaging the Government to iron out the challenges. It, however, said sector members must continue to comply with regulations while engagements with the Government on the matter are finalised.

Mr Mutashu said businesses should complement the Government on policy co-ordination, implementation and compliance. — @mthabisi_mthire.