Companies use Zimdollars to pay taxes, hide US dollars

The Zimbabwe Revenue Authority (ZIMRA) says it is concerned about the growing number of taxpayers who are failing to declare sales in the currency of trade as domestic US dollar revenues soar across the economy.

Ideally, corporates should pay taxes in currency of trade, in this case the US dollar which is the most dominant in the Zimbabwean economy.

President Emmerson Dambudzo Mnangagwa’s spokesperson George Charamba recently confessed that the country’s economy is fully dollarised.

He said about 80 percent of trade in the country is being conducted in foreign currency, and taking that into account, ZIMRA expects to receive more taxes in that currency.

ZIMRA, is the body responsible for collecting taxes and other revenue streams for the government in Zimbabwe.

In addition to its role as a collector of taxes and revenue, the agency advises the legislature on enacting new revenue streams. In 2004, the agency spearheaded the introduction of the value added tax in Zimbabwe, replacing the sales tax.

The agency in the past has endorsed the presumptive tax and road tolls, as well as new systems like Asycuda World and a self-assessment system of taxation.

It derives its mandate from the Revenue Authority Act, passed by the parliament of Zimbabwe in 2002 and other related legislation.

Zwnews