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Oliver Kazunga, Senior Business Reporter
THE Zimbabwe Revenue Authority (Zimra) is set to introduce electronic duty-free certificates for importation of goods exclusively meant for use by the Government.
The move is meant to curb corruption and improve accountability in line with the Government’s thrust of enhancing good governance and quality public service.
Finance and Economic Development Minister Patrick Chinamasa said recently that the proposed electronic facility would detect abuse of the duty free facility.
“The Customs and Excise legislation provides for duty free importation of goods for the exclusive use by Government. This provision is, however, subject to the condition that a certificate under the hand of a responsible officer is furnished to the commissioner general of Zimra.
“There are, however, circumstances when duty-free certificates have been abused thereby prejudicing the fiscus as well as local producers,”said Cde Chinamasa.
He said in order to enhance compliance and also secure an effective audit trail, an electronic duty-free certificate will be introduced.
A tax expert Mr Tendai Mavima said while introducing electronic duty-free certificate was noble, it was imperative to first identify how fraud was perpetrated using the duty-free certificates.
“Before introducing electronic duty-free certificates, the Government has to look at it in two ways; how the fraud was perpetrated. For example, if the fraud was committed using forged duty-free certificates, the electronic duty-free certificates will curb the fraud.
“On the other hand if fraud was committed using valid duty-free certificates to import certain goods on the pretext that they are for Government use, then even if the electronic duty-free certificate is introduced that kind of fraud will still be committed,” he said.
Mr Mavima said given such a challenge, it would be prudent for Zimra officials to intensify post importation audits to establish whether the imported goods are being used by Government.
“Even if the electronic duty-free certificates are introduced, Zimra officials will still be required to intensify post-importation audits visiting Government departments to see if the imported goods are being used by Government,” he said.
There is no public information yet to indicate how much Zimra might have lost as a result of fraud on duty-free certificates.
“We don’t want to speculate on the amount of revenue that Zimra might have lost as a result of fraud on duty-free certificates, the Government or Zimra should provide the trade statistics,” said Mr Mavima.
A recent forensic audit on the operations of Zimra has revealed endemic corruption, violation of Government laws and poor corporate governance.
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