Online Reporter
Sikhulekelani Moyo, Business Writer
THE Zimbabwe Revenue Authority (Zimra) has urged businesses across sectors and entrepreneurs to honour their tax obligations in compliance with established regulations to avoid penalties and conflicts with regulatory authorities.
This was highlighted during a business breakfast meeting between Zimra and tourism industry players in Bulawayo on Tuesday, held under the theme: “Enhancing Compliance and Revenue Generation in the Tourism Industry by Promoting Responsible Tax Practices and Sustainability.”
Tourism Business Council Chief Executive Officer, Mr Paul Matamisa, said the tourism industry had approached Zimra to seek clarity on various statutory instruments affecting the sector. He emphasised that compliance was a critical issue that needed to be addressed.
“Compliance does not only affect Zimra; it also affects businesses,” said Mr Matamisa.
“We have heard from the discussions here that some people are operating businesses but are not members of any organisation, nor are they engaged with Zimra or the Zimbabwe Tourism Authority. They are simply pocketing whatever they earn and enriching themselves,” he added.
“We know that for any Government projects and programmes to function, funding is required. Where does the Government get that money from? It has to come from taxes, which are therefore very important.”
Mr Matamisa stressed that citizens must pay their taxes to enable the Government to implement development programmes, including infrastructure projects and the procurement of medicines.
“If everyone contributes, it becomes cheaper and easier for all. If the Government requires ZWG2 billion from tax collection, it has to raise that amount. If only a few contribute, they bear the burden of covering the shortfall.
“But if many of us comply, each person contributes only a small portion to support the government’s initiatives. This is what people need to understand so that we can all play our part and work towards ensuring compliance,” he said.
Zimra Revenue Assurance Commissioner, Constance Shumbayaonda, said the revenue authority was making efforts to educate the sector on tax expectations in a bid to increase compliance.
She noted that this would help eliminate penalties and interest charges, which are detrimental to businesses.
“For the tourism sector, we are particularly concerned because we have witnessed significant growth. At the end of the year, there was a surge in travellers, both local and international, visiting our resort areas,” said Commissioner Shumbayaonda.
“As Zimra, we are committed to reaching out in our efforts to boost revenue collection. We have also automated our systems to allow businesses to engage with us from the comfort of their hotels and lodges, reducing compliance costs.”
In November last year, Zimra held a similar engagement meeting in Harare. Following the Bulawayo meeting, the authority is set to host another session in Victoria Falls. The Harare meeting resulted in increased uptake and registration through the Tax and Revenue Management System (TaRMS), a digital platform designed to simplify the process.
She added that some businesses fail to comply due to a lack of adequate information, highlighting the need for collaboration with industries to enhance awareness and information sharing. —@SikhulekelaniM1
