Zimra blocked from garnishing firms

Government has resolve to stop the Zimbabwe Revenue Authority (ZIMRA) from garnishing bank accounts of defaulting companies and institutions in order to mitigate the haemorrhage being endured by local firms as a result of a worsening economic climate.

Sources say it was agreed after extensive discussions in one of the recent Cabinet meetings that Zimra should suspend forthwith the issuance of garnishee orders after taking into consideration the impact they were having on the affected companies.

Government want the tax authorities to explore other mechanisms of enforcing compliance that will still achieve ZIMRA's stated objective of raising revenue for the fiscus without necessarily condemning the affected companies to the corporate grave yard.