Chronicle Editor
Zvamaida Murwira and Mutsawashe Mashandure, Harare Bureau
THE Zimbabwe Revenue Authority (Zimra) has launched a nationwide blitz against businesses evading taxes and undermining the local currency by rejecting the ZiG currency or falsely claiming that their Point Of Sale (POS) machines are out of service.
This comes as the tax collector seeks to enhance resource mobilisation aimed at funding national projects in line with the National Development Strategy.
In a statement yesterday, Zimra said it has set up an automated and confidential whistleblowing platform to help crack down on unscrupulous companies that stifle demand and the usage of the local unit by inducing consumers to pay for goods and services exclusively in foreign currency.
The measures come after President Mnangagwa on Wednesday issued a stern warning to economic saboteurs, assuring the nation that his administration will protect ordinary citizens from greedy and profiteering businesses bent on undermining the economy.
It also comes at a time when some unscrupulous companies have been feigning compliance with official exchange rates but inflating prices through exclusive sales in foreign currency even though they would have equally displayed prices in ZiG.
The assault on the ZiG has seen it depreciating in value of late compared to the United States dollar on the black market, despite the significant gains recorded when it was launched in April this year, which contained inflation.
Zimra said it had launched an automated and confidential whistleblowing platform aimed at encouraging voluntary reporting of tax and customs offences.
The tax collector called on businesses and individuals to report malpractices involving companies that refuse the local currency or claim their POS machines are out of service to compel transactions in United States dollars.
“Zimbabwe has been going through a significant growth trajectory in infrastructure development, through construction of roads, dams and schools among other developments. This has been enabled through domestic tax revenue mobilisation which is only possible if everyone plays their part. The Zimbabwe Revenue Authority (Zimra) is therefore, calling upon members of the public to partner the Authority in the fight against tax evasion and smuggling of goods in the country,” reads the statement.
“The Authority is encouraging all corporate citizens and individuals to come forward and report any malpractices, particularly in relation to businesses that may be refusing to trade in local currency or those that purport to have out of service POS machines just as a means to force payment of goods/services in United States dollar cash. We encourage the public to provide the information voluntarily and out of goodwill. Zimra still offers an automated and confidential whistleblowing platform which can be accessed from anywhere across the length and breadth of the country and the globe. The reporting platform is safe, secure and all data will be handled with confidentiality and will only be accessible to selected and authorised Zimra officials.”
Commenting on the latest measures, an economist, Mr Marvelous Mandisodza, said the move by Zimra will create demand for ZiG and arrest rent-seeking behaviour.
“This is the way to go. Creating a whistle-blowing mechanism helps in curbing business malpractices. The measures by Zimra are noble and we expect more when the Reserve Bank of Zimbabwe Monetary Policy Committee meets soon to explore ways to stabilise the local currency,” said Mr Mandisodza.
Zimbabwe National Chamber of Commerce chief executive officer, Mr Chris Mugaga, said there was a need for all stakeholders to defend the ZiG for the attainment of national objectives.
He said the Central bank ought to keep its word that it will not print money.
“The market should defend the ZiG because once the local unit fails, it will retard all efforts of having our own currency. The measures by Zimra, while noble, are merely addressing the symptoms,” said Mr Mugaga.
A renowned industrialist, Mr Kurai Matsheza, said while the efforts by the Government to stabilise the ZiG were positive, more needed to be done.
“One other thing that we have always said is that let the exchange rate be allowed to float and it will establish its own premium. We also need to avoid printing of money,” said Mr Matsheza, who is the former immediate past president of Confederation of Zimbabwe Industries.
Some businesses have been under fire for pegging prices using the black market rate on ZiG quoted prices, something that has driven prices of goods and services higher.
Market analysts have said there has been no justification for the exchange rate to rise as both macro and micro economic fundamentals did not justify an upward movement of the exchange rate.
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