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THE call by Zimbabwe Revenue Authority Commissioner-General Gershem Pasi for all Government departments which collect revenue to remit the funds to Treasury for accountability and smooth allocation to areas of urgent need is spot on. Coming in the wake of the multiple scandals that have been unearthed in some Government departments, parastatals and State linked-enterprises, the suggestion definitely merits serious consideration.

From the reports that the Auditor-General has presented to Parliament, it is clear that gross financial mismanagement has been going on in many Government departments including those that collect considerable sums in revenue.

In addition, it has become apparent that too much money is being spent on non-essential services and goods while the most important needs are overlooked.

Areas like health and education and employment creation are being allocated mere pittances while some departments splurge on luxuries.
We must have a unified national accounting system which allows all money that comes into national coffers to be spent in the way that is best for the country.

Just as Zimra itself retains a percentage of the revenue that they collect, the other departments can also retain something to cover administrative costs while remitting the bulk of the money to Treasury.

As Mr Pasi pointed out, such a system would obviously allow resources to be allocated in a more balanced manner.
The current system where some arms of Government collect revenue to spend as they deem best then still go on to milk Treasury for items like salaries is untenable.

It also disadvantages departments that do not collect any revenue and yet they are still expected to provide services to the populace. The example raised by Mr Pasi of the Zimbabwe Republic Police collecting millions in fines while the Zimbabwe Prison Services struggles to take prisoners arrested by the same police force to court is a good one.

But it would be wrong to focus all attention on the police as they are not the only ones who are collecting payment.
Many authorities collect mandatory fees and also receive grants from the Government which they use at their discretion for purposes that may not be urgent.

Another example we can cite is the Zimbabwe Tourism Authority which spent millions on the Harare Carnival which left many asking how exactly the event benefited the nation.

This is an authority that collects revenue that it fully retains and also gets Government grants in addition to that.
The fact that zimra appears to be the sole source of funding for the Government is probably the main reason why the Zimbabwean tax regime is one of the most punitive in the region and possibly in the world.

The burden is falling hardest on the few formally employed workers who on top of their Pay As You Earn must fork out an Aids levy, rural electrification levy as well as value added tax.

Then at the end of the day they have to put up with shoddy services in public institutions in almost every field including health, education and national document procurement.

Businesses are no better off with some of them being closed down to pay off the tax man. Tourism taxes are pushing up prices thereby directly reducing the number of visitors to the country.

The introduction of the Consolidated Revenue Fund will definitely mean more money in the system and fewer loopholes for abuse and fraud of public funds.