Zimra tightens screws on joint post clearance compliance

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Zimbabwe Revenue Authority has stepped up efforts in engaging security agents during border patrols and roadblocks to curb smuggling and other forms of evading trade taxes.

Zimra vice board chairman Josephine Matambo says efforts are also underway to coordinate fully with other border authorities from countries with which Zimbabwe shares borders.

In a summary of revenue enhancement strategies implemented during the second quarter of 2021, the Authority said it intensified intelligence gathering.

In some instances, Zimra deployed officers to various businesses to gather intelligence on business activities undertaken and the forms and methods utilised to evade taxes.

The Authority is also implementing its debt recovery strategy including follow up on outstanding taxes,Matambo said.

On the economic front for the second quarter ended June 30 2021, Zimra said the economic environment continued to improve in the second quarter of 2021.

“Inflation eased by 133.91 percentage points from 240.55% in March 2021 to 106.64% in June 2021. Generally, the exchange rate remained stable despite the local currency weakening slightly in the second quarter of 2021. The stability in exchange rates and the decreasing inflation have instilled more confidence in business and the performance of the economy as a whole, thereby boosting economic activity leading to a positive effect on tax revenue collections,” Matambo said. 

“The recent reports by World Bank and the International Monetary Fund (IMF) that projected a 3.9% and 6% growth respectively for the year 2021 (World Bank Press Release NO: 2021/162/AFRI and MF, Press Release No. 21/183) reinforce the optimistic expectation of a 7.5% growth projected by the government at the beginning of the year. This is underpinned by a bumper harvest for the 2020/21 agricultural season, increased energy production and the resumption of increased manufacturing and construction activities. However, the projected improvement in economic growth could be threatened by the emerging COVID-19 induced business interruptions.”

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