Zimra misses fiscalisation deadline

Munyaradzi Mlambo
THE Zimbabwe Revenue Authority has linked 60 percent of the 10 000 fiscal devices earmarked for connection to its servers by September 30, 2016, but remains confident that the process will be completed soon.The scope of the project – which only used to cover class C taxpayers – those whose annual turnover is more than US$240 000 – has since been expanded after Government made it mandatory for all class A,B and D taxpayers to have fiscal devices or tax registers beginning January 2017.

Overall, 350 000 devices are now expected to connect with Zimra’s system. Class A, B, D taxpayers include VAT registered operators whose annual turnover is less than US$240 000.

While class A and B operators submit their VAT returns bi-monthly, class D submit the returns in any other months as approved by the Commissioner-General of Zimra. Fiscal tax devices and registers are temper-proof gadgets that electronically record sales and automatically determine taxes that are due to Zimra.

By linking the devices to Zimra’s server, it makes it possible for the Authority to see transactions in real time. The process also makes it difficult for retailers to prejudice the taxman.

Zimra recorded a 50 percent jump in VAT collections on domestic sales in the first seven months of the year from the same period in 2015 after it successfully linked its systems with fiscal devices that were first installed in 2010 and 2011 when the process began.

Government made fiscalisation legally enforceable through Statutory Instrument 104 of 2010 on June 8, 2010.

Last week, Zimra board chairperson Mrs Willia Bonyongwe told The Sunday Mail Business that the recent widening of fiscalisation by Government to cover several other categories has presented a new challenge, resulting in delays to conclude the project.

“It’s no longer just big retailers that are supposed to have fiscal machines. Everyone is supposed to have a machine. That makes our task much bigger. Instead of 10 000 machines, we now have over 350 000 machines. Some will, however, not need fiscal gadgets but their servers will be connected to Zimra tax management system,” said Mrs Bonyongwe.

There have also been bottlenecks in the supply of the devices as the tax authorities have restricted the supply of the gadgets to approved vendors.

Zimra pulled the plug on other suppliers after they failed to provide the necessary upgrades. Mrs Bonyongwe noted that it would be ideal for every retailer to have a fiscal device.

In order to prevent further leakages of revenue from the fiscus, Zimra has also begun implementing an in-house Cargo Tracking System where it would be able to monitor the movement of trucks within Zimbabwe.

By so doing, authorities will be able to clamp down on transit fraud which in part has resulted in an influx of smuggled goods on the local market. Techno Brain Limited, the company that won the tender to install the system, has already started working on the project.