Firms evade remitting forex taxes

Firms evade remitting forex taxes

Companies, Tax
THE Zimbabwe Revenue Authority (Zimra) says it has detected a string of scams in which some companies charging for goods and services in foreign currency have evaded paying taxes in forex. This manipulation of the tax system has prejudiced the country of millions of United States dollars in potential revenue, according to Zimra commissioner-general Faith Mazani. In June, the central bank made key monetary policy shifts, in which Reserve Bank of Zimbabwe (RBZ) governor John Mangudya gave firms the green light to charge goods and services in both the local and foreign currencies. This was a huge change of policy, which came after the RBZ had ended a decade-long multicurrency system last year and re-introduced the Zimbabwean dollar as the medium of exchange for domestic transactions. The RBZ said companies…
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Mthuli introduces US$30 monthly tax on trinket traders

Mthuli introduces US$30 monthly tax on trinket traders

Companies, Tax
SMALL business operators plying their trade in partitioned compartments in the country’s CBDs have been slapped with a US$30 monthly presumptive tax to be collected and relayed to government by building owners. The harsh policy move was announced in parliament by Finance Minister Mthuli Ncube while presenting his 2021 budget Thursday. “Honourable Members would be aware that Government has implemented a presumptive tax structure on informal businesses that include micro and small enterprises, with a view to ensure that they contribute to the Fiscus,” Ncube said. “A number of enterprises operate from designated business premises where the landlords are either Local Authorities or private property owners such as the Gulf Complex and Kwame Mall, among others. Their place of business is, thus, comprised of partitioned units in commercial buildings. “The…
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2021 budget: A bitter pill to swallow

2021 budget: A bitter pill to swallow

Companies, Tax
THE 2021 budget presented by Finance minister Mthuli Ncube last week missed a golden opportunity to stimulate various productive sectors of the economy. Instead the government piled more taxes on its already over-taxed citizens. A week before the budget announcement, Ncube presented a precursor to it, an economic blueprint dubbed the National Development Strategy (NDS1) through which he set the tone for ambitious plans to turn around the economy. But critics warned that without the political will to wring far reaching reforms, the plan was already dead in the water. Zimbabwe has failed to secure new loans from multilateral institutions after it defaulted on its debt repayments. The country owes US$8,2 billion in foreign debts. With Zimbabwe in the throes of a debilitating multifaceted crisis compounded by severe headwinds of…
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