Tanaka Chare
The Zimbabwe Revenue Authority (ZIMRA) has shed light on taxation policies during the Building Bridges for Global Markets workshop which was held in Gweru last week.
ZIMRA representative from the Domestic Taxes Department, Mr Isaac Tavara gave an insight into the taxation policies in Zimbabwe as SMEs, entrepreneurs, partnerships, churches, and even deceased estates are required to register their businesses and pay taxes.
“ZIMRA encourages business people to register their businesses as certifying the operations builds market credibility.
We have made registration an easy process, a click of a button can make your business get registered by ZIMRA online. An identification card is all that is required for registration to take place.”
“The revenue authority also awards credits every month to registered businesses. The credits are awarded to the youths, senior citizens (above the age of 55), people who are visually impairment among others,” he said.
Tavara explained how the government gets revenue through taxes and how it helps to boost the economy of Zimbabwe.
“ According to Public Finance, statistics have shown that more than 90% of the funds being used by the government are from revenue. The revenue generated through taxes can be used for the economic development of our country.”
Businesses and entrepreneurs are encouraged to pay income tax because it is more favorable than presumptive tax which does not take into account the losses of the business.
Meanwhile, a representative from ZIMRA, from the Customs Duty department highlighted a few issues when SMEs and entrepreneurs trade.
Importing cars and ‘mabhero’ are the most asked questions whereby traders would want to know the right procedures.
“Importing a car which is more than 10 years old to Zimbabwe requires import license same as mabhero.”
He added that some goods like pesticides and medicinal drugs required permits and tax clearance forms.
“Permits like Consignment Based Conformity are procedures to verify if the goods which are being brought to the country do not cause diseases, harm the environment and have other negative impacts. 12% of the value of the goods is charged if does not have such permits when importing those type of products.”
For commercial purposes, an additional tax is paid on goods like cigarettes, filament lights, and alcohol and for Importing goods like perfumes, handbags,cosmetics among others, the trader has to pay customs duty in US dollars.
