Zimra harsh taxes loom as the authority considers imposing penalties to force companies and institutions to settle their outstanding tax obligations, which have ballooned to a staggering ZiG348.33 million and US$308.03 million in domestic tax debt, and ZiG506.39 million and US$113.37 million in trade taxes.
To address this issue, Zimra has proposed a review of the interest rate on outstanding taxes, suggesting an alignment with the bank policy rate (BPR) plus 5%. This move aims to encourage prompt payment of taxes by companies and institutions. Economist Dr. Prosper Chitambara supports this proposal, arguing that it could serve as an effective deterrent against tax evasion.
However, some business stakeholders have expressed concerns that the proposed rate adjustment may place an additional burden on companies already struggling with cash flow challenges. Economist Tinevimbo Shava cautioned that while the measure could improve tax compliance, it might also lead to unintended consequences, such as pushing struggling companies further into financial distress.
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Despite the challenges posed by the outstanding debt, Zimra reported a positive revenue performance in the first half of 2024, with a total net revenue of ZiG36.06 billion, surpassing the target of ZiG35.39 billion. This achievement reflects the effectiveness of various initiatives introduced to enhance revenue generation, particularly in key areas such as Individual Income Tax, Value Added Tax, Customs Duty, and the Intermediated Money Transfer Tax.
The introduction of the new currency, ZiG, in April this year has also contributed to a more stable economic environment, prompting businesses to adapt quickly and align with new tax revenue targets implemented in May. Zimra harsh taxes remains committed to implementing strategies that will reduce the debt burden while ensuring that companies and institutions meet their tax obligations.
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