Firms urged to adopt new tax system

low, an official said yesterday.
Government announced late last year that firms with an annual turnover of US$240 000 would be required to adopt the electronic tax devices as a means to improve the revenue collection system.
However, a lot of companies, mainly retailers, have struggled to raise the massive resources required to buy the new tax registers.
The Spar supermarket franchise for example, reportedly needs several million dollars to install the tax gadgets at its various retail outlets countrywide.
Zimbabwe Revenue Authority commissioner general Gershem Pasi said that while Government would not waiver the adoption deadline, firms could be exempted upon application.
“The uptake of fiscalised tax devices by companies has been very slow,” he said.
“We are now accepting application for extension of the deadline for companies on an individual basis.”
He added that Government, through the Finance Ministry was yet to approve more suppliers of the tax registers to serve the local market.
At present, only two firms, Axis Solutions and First Computers are supplying the devices.
“The approval process of suppliers by Government has also been slow. We need to give companies time to adopt the new tax system,” Mr Pasi said.
He went to say that Government is not bent on penalising defaulters but rather encouraging them to embrace the new tax gadgets.
Mr Pasi, however, could not give the amount of money collected through penalising defaulters.
“We are not interested in penalising but encouraging adoption,” he said, noting that the tax authority would study each exemption application.
The new tax management system is expected to thwart tax evaders while increasing Government’s revenue by nearly 20 percent. Other African countries including South Africa, Tanzania, Kenya and others outside the continent such as Argentina, Brazil, Greece and Turkey have already adopted the electronic system.
Once all firms adopt the new electronic tax devices, Zimra would be able to access their books of accounts at any given time. – New Ziana.