adminUnder the country’s new tax regulations, businesses with an annual turnover of $240 000 are required to install the tax registers to account for Value Added Tax (VAT).
Responding to written questions from Business Chronicle, GMB corporate communications manager Ms Muriel Zemura said the parastatal had finished installing the gadgets at five of its 84 depots dotted across the country.
However, she would not be drawn into revealing the amount that had been spent on the exercise so far.
“Five depots have so far been completed. The depots are in Chitungwiza, Marondera, Norton, Aspindale and Cleveland.
Currently five other depots in Concession, Glendale, Chiweshe, Mutoko, and Murewa are being worked on and 31st July has been set as their completion date,” she said.
ETRs record sales at the point of sale as each register has a memory card that records fiscal data used by the Zimbabwe Revenue Authority to collect taxes from businesses.
Apart from boosting taxation efficiency, it is hoped that fiscalised registers will tighten internal financial controls and enhance corporate accountability.
In 2010, Government announced the need for entities to install ETRs after noting that a number of businesses were deliberately evading remitting VAT and so prejudicing the fiscal authorities of thousands of dollars in revenue.
To date, many businesses are yet to implement the system citing high installation costs.
VAT is Zimbabwe’s biggest contributor to Government revenue and the operationalisation of ETRs is expected to see VAT collection increasing by about 20 percent.
Other countries that have implemented ETRs include Kenya, Ethiopia, Tanzania, South Africa, Brazil, Poland and Turkey.
Online Reporter