Be smart; Zimra counsels govt

share on:

<strong>HARARE</strong> - In line with its new economic thinking, government must have checks and balances in place to guard against unscrupulous investors who may want to take advantage of its “Zimbabwe is open for Business” mantra.</p>

This was said by the commissioner-general of the Zimbabwe Revenue Authority (Zimra), Faith Mazani, when she addressed parliamentarians during a workshop held in Harare last Wednesday.

Mazani said revenue collector expects incoming investors to contribute meaningfully not only towards its tax revenue base but also in creating employment and economic development by bringing in new technologies.

ALSO READ   Killer launches massive campaign to drum up support for Mnangagwa ahead of 2018 elections

“There should be a level playing field for existing businesses to ensure equal opportunities for both local and foreign investors,” said Mazani.

“There is need to balance revenue collection efforts and ‘open for business’ opportunities. As a country, we need to be aware of the fact that tax concessions, which are granted to investors, tend to erode the revenue base. Therefore, checks and balances to ensure that concessions extended to investors do not outstrip the envisaged benefits to the economy must be employed.

ALSO READ   RapidTransfer App ensures Nigerians get 100% of their Remittances – Ecobank MD

“For example, some companies in sectors such as mining are in perpetual losses while also receiving refunds. Some companies close at the end of the tax period and come in under new names for further concessions,” added Mazani.

Zimra said non-tax measures need also to be considered to lure investors.

ALSO READ   Prison inmate reveals how he got into trouble after impre_gnating 2 girls at the same time

During the first quarter of this year, tax expenditure or revenue foregone amounted to $1,019 billion, which was 47,80 percent of the total potential revenue of $2,132 billion for the same quarter.

[Adz]

Leave A Comment Below
share on: