Fiscalised tax register price remains high

In July, the Government licensed eight more suppliers bringing the total to 10 licensed fiscalised tax register suppliers.
Registered retail operators are required to use the fiscalised registers for purposes of enhancing accounting for VAT.

One of the suppliers, Document Support Centre chief operating officer Mr Hardon Zawenga said low uptake of the devices had resulted in the prices remaining high.
“It is very difficult to reduce the prices because most companies are sitting on the fence and are reluctant,” he said.
“There is a lot of software involved. Some of the software is not manufactured locally, there is no way we can reduce prices anytime soon especially if the companies are too reluctant to implement the project.”

“The new tax technology is very costly with expenses going beyond US$1, 5 million,” Mr Zawenga added.
He said the new software was also difficult to implement since it required more time.
“These are not plug in and play devices, they are very highly technical,” he said.

The Government has, however, undertaken to sponsor 50 percent of the cost of the acquisition of the fiscal devices to lower the burden on retailers.
In the new system, the Zimbabwe Revenue Authority 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.