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Golden Sibanda Senior Business Reporter
The Zimbabwe Revenue Authority says its $3,8 billion revenue target for 2017 will not be negatively affected by the suspension of backdated Value Added Tax on meals for non-resident tourists, an official has said.
Finance and Economic Development Minister Patrick Chinamasa last week gave hoteliers relief on the $3 million worth of back-dated Value Added Tax on meals charged on tourism packages for non-resident tourists, as a way of promoting the viability of the tourism sector.
Zimra audited clients and found that most non-resident tourists pay accommodation and meals as a package, which hoteliers did not separate in accordance with the law.
It was discovered that some of the operators had not charged VAT on meals due to misinterpretation of the law, which zero-rated accommodation for foreign tourists.
The reprieve – in the form of zero-rating of meals, which were part of tourism packages for the period 2009 to 2015, took into consideration that it was difficult for hoteliers to recover the outstanding VAT from the foreign tourists who have since left the country, which hoteliers were supposed to charge in accordance with the law.
However, the relief only applies for the period 2009 to 2015 and is, therefore, not a reversal/suspension of statutory requirement regarding VAT on tourism products, which operators should still charge and remit to Zimra in accordance with the provisions of the legislation.
Zimra chairman Willia Bonyongwe said the relief on payment of the backdated VAT was meant to capacitate and grow the tourism industry so it could contribute even more to the fiscus in all revenue heads.
“The revenue target remains as set and Zimra will meet the target as we continue to educate our clients on the importance of voluntarily meeting their fiscal obligations on time and in full,” said Mrs Bonyongwe.
She said Zimra was responsible for implementing fiscal laws, and where decisions have been made to give relief to any sector of the economy in accordance with Government’s thrust to nurture and promote the survival of businesses; the revenue authority implemented such policies as part of its mandate in terms of the laws.
“There is, therefore, no discord between the Zimbabwe Revenue Authority and the Minister of Finance and Economic Development. The Minister pronounces policy and Zimra implements,” she stressed.
Mrs Bonyongwe said tax reliefs granted by the Government, including the back-dated VAT on the tourism industry, were given after considering many factors, including the economic developments.
“The Government policies, including fiscal policies, are dynamic and as you are aware, the Minister of Finance and Economic Development announces the National Budget Statement and the Mid-Term Fiscal Policy Review Statement to align the fiscal policy to prevailing macro- and micro-economic developments,” Mrs Bonyongwe said.
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