Zimra intensifies fight against smuggling

THE Zimbabwe Revenue Authority (Zimra) has come up with various measures towards curbing the smuggling of goods and laid down incentives for the manufacturing and value adding companies which have been supporting the tax collector over the years.

In a presentation during an open session of the Confederation of Zimbabwe Industries meeting held in Bulawayo last week, Zimra deputy commissioner-general in charge of domestic taxes, Mr Happias Kuzvinzwa said his organisation was working on introducing advanced border and port of entry security systems to monitor the movement of goods across borders.

"We are working on implementing an electronic cargo tracking system that uses electronic seals and transmitters to monitor transit cargo. We are also looking at implementing use of non-intrusive inspection systems like sniffer dogs, joint border patrols with other security agencies, cargo escorts and commercial clearance of private imports transported by hired carriers.

"In order to complement efforts to resuscitate local industry we are going to review downwards the duty free allowance to $200 per calendar month, reduction of remission from $50 per day to $10, seizures, penalties and prosecution of offenders, CCTV system for close monitoring, whistle blower fund and use of third party information," said Mr Kuzvinzwa.

He said Zimra was also promoting ease of doing business for companies.

Mr Kuzvinzwa said the cost of compliance like pre-clearance facilities such as e-services and e-banking, cargo tracking technology, Tax Management System/ fiscalisation and fighting corruption was among other things which Zimra was doing to help companies stay sustainable.

"Implementation of Government policy including protection of local industry and legislated incentive to manufacturers which include introduced customs duty on selected imported agricultural implements in order to enhance the competitiveness of local producers like a specific duty of $5 per kilogramme on plough beam, to revive the local soap manufacturing industry, Government introduced a specific duty of $0,50 per kilogramme, increase duty on imported canopies and drop side panels from 10 percent to 40 percent among others."

On the issue of garnishing of company accounts, he said the Appointment of Agent (AAs) or garnishee orders was a last resort collection measure and it was preceded by engagement with the client, issuance of reminders to make the client pay voluntarily.

"Where the client is unco-operative and has not made satisfactory arrangements to pay the arrears, or reneges on agreed payment plans Zimra will then resort to issuance of AAs. The garnishee order is approved by the regional manager, after he/she has satisfied himself or herself that all other measures to ensure the taxpayer liquidates the area have not yielded the expected results. It should be noted that AAs are not always placed on bank accounts. The defaulting taxpayers own debtors can also be subject to AAs," said Mr Kuzvinzwa.

In the case of a possible moratorium for companies who are struggling to pay long dated historical dues, Mr Kuzvinzwa said apart from the processing and negotiation of payment terms, it cannot write off debts.