The Ministry of Industry and Commerce is planning to produce a comprehensive report on the challenges faced by industry in its dealings with the Zimbabwe Revenue Authority (Zimra), an official has said.
BY VICTORIA MTOMBA
Speaking during a Confederation of Zimbabwe Industries (CZI) manufacturing sector survey launch last week, Industry and Commerce minister Mike Bimha said the report would look at how tax regulations were affecting the smooth operation of companies.
“We are supposed to produce a report on the issues that business is having with Zimra,” Bimha said.
An official from the ministry told Standardbusiness that a proposal had been made to form a committee to specifically look at problems faced by businesses at ports of entry.
“I do not know if it will be on a ministerial level,” said the official.
According to the CZI survey, the manufacturing sector was facing many challenges including Zimra related ones, notably heavy taxes, as well as high fees and licence costs.
Zimra administers several taxes that include corporate income tax, mineral royalties, Pay as You Earn and Withholding tax among others.
Corporate income tax is derived from the sources within the country.
Corporate tax is currently at 25% since 2010 while 3% goes towards the Aids levy. Pay as you earn rates range from 0% on the low income brackets to 50% on the higher brackets. Employers are required to withhold tax from remuneration paid to their employees.
Speaking at the launch, Zimra representative Florence Jambwa said if business had tax issues, they should approach the revenue collector.
“I have noted that we have been cited as a barrier to business but if you have issues in terms of our inability to deliver, approach us,” she urged.
Royalties are collectable from all the minerals or mineral bearing products obtained from any mining locations and disposed by a miner or on his behalf.
They are chargeable whether the disposal is made within or outside Zimbabwe. Withholding tax is deductible from all amounts payable to all who enter into contracts with the state or statutory body, quasi government institution and taxpayers registered with Zimra.
Early this year, Zimra commissioner general Gershem Pasi said the revenue collector was owed over US$500 million by companies.
Many companies have had their bank accounts garnished by the revenue collector due to non-remittance of taxes.