News / National
Zimra opposes tax incentives
13 Nov 2015 at 07:35hrs | Views
The Zimbabwe Revenue Authority (Zimra) says offering tax incentives to foreign companies is tantamount to surrendering the country's taxing rights and would negatively impact on socio-economic development.
The Government has said it is planning to offer tax incentives to companies operating in the SEZs in certain industries such as manufacturing as a way of attracting foreign direct investment.
But, Zimra commissioner general Gershem Pasi said tax incentives mostly resulted in benefits accruing to the country of origin of the concerned companies and not the host country.
He cited China as having successfully implemented the concept of SEZs, attributing this to the fact that the zones were created for Chinese investment rather than foreign companies.
He said the Government should instead put most of its focus on encouraging domestic investment, highlighting that currently there were too many laws and taxes that were stifling the growth of local companies.
The Government has said it is planning to offer tax incentives to companies operating in the SEZs in certain industries such as manufacturing as a way of attracting foreign direct investment.
But, Zimra commissioner general Gershem Pasi said tax incentives mostly resulted in benefits accruing to the country of origin of the concerned companies and not the host country.
He cited China as having successfully implemented the concept of SEZs, attributing this to the fact that the zones were created for Chinese investment rather than foreign companies.
He said the Government should instead put most of its focus on encouraging domestic investment, highlighting that currently there were too many laws and taxes that were stifling the growth of local companies.
Source - the herald
