Zimra launches crackdown on economic saboteurs

The Zimbabwe Revenue Authority (ZIMRA) has launched a nationwide blitz targeting businesses that evade taxes and undermine the local currency, the Zimbabwe Gold (ZiG), by either rejecting it or falsely claiming their Point of Sale (POS) machines are out of service. This operation is part of ZIMRA's effort to enhance revenue collection and support national projects aligned with the National Development Strategy (NDS1).

In a statement yesterday, ZIMRA announced the creation of an automated and confidential whistleblowing platform aimed at exposing companies that engage in practices that reduce demand for the local currency by insisting on foreign currency payments for goods and services. This move follows President Mnangagwa's stern warning on Wednesday against economic saboteurs, promising to protect citizens from businesses exploiting the market for profiteering.

Some businesses have been accused of inflating prices and exclusively trading in foreign currency, despite displaying prices in ZiG. This has contributed to the recent depreciation of the ZiG on the black market, despite its initial success after its launch in April 2024 when it helped to curb inflation.

ZIMRA emphasized the importance of tax compliance to sustain the country's infrastructure projects, which include the construction of roads, dams, and schools. "Domestic tax revenue mobilisation is key to Zimbabwe's development. The Zimbabwe Revenue Authority (ZIMRA) is calling on the public to partner with us in combating tax evasion and the smuggling of goods," read the statement.

The whistleblowing platform, which can be accessed from anywhere in Zimbabwe or abroad, will allow the public to report tax and customs offences securely and anonymously. ZIMRA urged citizens to report businesses refusing to accept the local currency or falsely claiming that their POS machines are out of service, stating that all reports will be handled confidentially by authorised ZIMRA officials.

Economists and business leaders have welcomed ZIMRA's crackdown. Economist Mr. Marvelous Mandisodza praised the whistleblowing initiative, saying it would create demand for ZiG and discourage rent-seeking behavior. "This is the way to go. It helps curb business malpractices, and ZIMRA's measures are noble," Mandisodza said.

Zimbabwe National Chamber of Commerce (ZNCC) CEO, Mr. Chris Mugaga, emphasized the need for stakeholders to defend the ZiG currency, warning that failure to do so could derail efforts to strengthen the national economy. He also called for the Reserve Bank of Zimbabwe (RBZ) to refrain from printing more money, saying, "The market should defend the ZiG because once the local unit fails, it will retard all efforts of having our own currency."

Industrialist Mr. Kurai Matsheza, former president of the Confederation of Zimbabwe Industries, highlighted the need for further steps to stabilise the local currency. He reiterated the importance of letting the exchange rate float to find its true value and urged the government to avoid excessive money printing.

Some businesses have come under scrutiny for using black market exchange rates to price goods in ZiG, driving up the cost of goods and services. Analysts have noted that the rise in exchange rates is not supported by Zimbabwe's economic fundamentals, which do not justify the upward movement.

ZIMRA's blitz is seen as a significant step in stabilizing the economy and ensuring fair business practices, with authorities aiming to restore confidence in the local currency and address inflationary pressures.