Corporate Tax Arrears Reach $ 1 Billion, Tax Agency – Medafrica Times
Zimbabwe companies and businesses owe the government more than $ 1 billion in back taxes, the Zimbabwe Revenue Authority said on June 25. Some of these companies have collapsed due to the economic crisis hitting the country.
Zimbabwe Revenue Authority (ZIMRA) Commissioner General Gershem Pasi told a parliamentary committee that businesses are struggling to stay afloat due to lack of credit, electricity shortages and good import competition Marlet.
“We had $ 500 million in unpaid taxes in 2013 and the arrears currently stand at over $ 1 billion,” he said. The late payment of tax is agreed upon when businesses and businesses demand it due to the issues they are facing, said Commissioner General Gershem Pasi.
According to Pasi, small businesses and those in the informal sector were not paying their tax obligations but that ZIMRA would conduct a pilot program to get them into the tax net.
ZIMRA is also reportedly targeting public taxis, most of which are unregistered, by installing electronic devices in taxis, which transmit data to its offices.
“The meters that we put in these taxis will be linked to our systems in real time and if someone tampers with the system, the vehicle will not start,” assured the Zimbabwean tax collector.
The government has forecast the economy to grow 3.1% this year, but many economists see no growth at all.
The tax collector has since set a revenue target of $ 3.7 billion in line with sluggish economic activity in the country.
The Treasury has already been forced to downgrade the 2015 budget from $ 4.1 billion to $ 3.5 billion, just over two months after the start of the year.
Official statistics suggest that more than 9.8 million of the country’s 13 million people now live on less than US $ 200 per month.
More than nine million Zimbabweans did not have access to running water last year, according to a government-commissioned study by South African researchers, FinMark.