Opinion / Columnist
Security forces fingered in smuggling
27 Jun 2014 at 14:37hrs | Views
Security forces operating along Zimbabwe's national boundaries are fingered in massive smuggling of various products as well as assisting smugglers to pass without apprehension. Criminals that are importing various products are allegedly smuggling goods as they work in cahoots with unprofessional members of the forces who are well syndicated. Zimbabwe Revenue Authority (ZIMRA) officials are part and parcel of these syndicates which are defrauding government of cash at a time when the revenue base is facing a decline.
The government revenue base is eroded by such illegal activities. It is common knowledge that anyone can pass through our boundaries evading payment of import duty and taxes as long as one can identify the syndicate.
Unprofessional members of the security forces are accused of assisting border jumpers to smuggle bales of second hand clothing from Mozambique every day. These are flooding the market at various flea markets scattered in all cities in places like Mbare's Mupedzanhamo. These goods are sold at very low prices. For instance, one can get a pair of trousers at a paltry $1 or 5 rands. These pose an unequal contest to regular dealers in the clothing industry who lose customers to such vendors. However, the ripple effect is that, these vendors do not pay tax to ZIMRA as opposed to established shops like Greatermans, Edgars, Topics and other such related businesses which pay corporate tax.
The continued smuggling in of such second hand goods is forcing closure of formal businesses. Maybe, this explains why Greatermans Shop is closing down.
One may ask the critical question that, "What is the capacity of ZIMRA in revenue collection from the informal sector?" The rest of Harare City, especially Mbare is littered with numerous dealers in the informal sector who are exchanging currency every hour. Some economists estimate that there is about $ 7 billion dollars that is in circulation on the informal sector. This amount is contributing nothing to the formal economy. Surely if ZIMRA manages to improve its revenue administrative efficiency we would face a jump-stride in our economy.
In view of these loop-holes, ZIMRA is urged to plug all perforations which are inherent at all boundaries and tax evaders in all sectors so as to reduce losses which are being incurred by government through illegal activities. Official corruption practiced by the well syndicated arms of government should be investigated and uprooted timeously to rescue the ailing economy.
I think ZIMRA should establish toll free numbers and a whistle-blowers fund so that members of the public are motivated to report all illegal activities which defraud government of revenue. It is mind boggling to note that law enforcement authorities of government are fingered as chief culprits in violating laws. The state should investigate these allegations and find working solutions in these areas.
Source - Suitable Kajau
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