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Wednesday, May 22nd
Headlines:
Zimra acts on revenue leaks, corruption PDF Print E-mail
Tuesday, 08 May 2012 00:00

Farirai Machivenyika Senior Reporter
THE Zimbabwe Revenue Authority is introducing a new electronic sys­tem that will connect it with the informa­tion technology systems of all compa­nies and organisations as part of measures to curb leaks in revenue collec­tion.

The new system will also ease pay­ment of taxes as Zimra will be work­ing with actual figures.
As part of measures to curb corrup­tion within its ranks, Zimra has also engaged the Zimbabwe Prison Ser­vices for orientation of their recruits on the conditions in the prisons.

This, according to Zimra, is meant to deter its staff from engaging in ille­gal activities in their day to day duties.

Presenting evidence to the Portfo­lio Committee on Budget, Finance and Investment Promotion, Zimra Com­missioner General Gershem Pasi said the new system, when adopted will go a long way in curbing leaks especially from mining houses.

“When you look at returns from the mining sector to the fiscus, it doesn’t match, even in tourism it’s the same, that is why we want to link up with everyone,” said Mr Pasi.
He said they had stationed officers at various mining companies, includ­ing at Marange diamond fields and platinum mines, but had found it diffi­cult to ascertain the levels of produc­tion due to the nature of oper­ations and high secu­rity systems.

“That is a challenge, that is a night­mare (monitoring at mines), right now we have issues with diamonds. The focus is on Chiadzwa but we have other areas which are producing dia­monds.

“Even with platinum, because of the high value of the platinum group of minerals we would require an army to be stationed there,” he said.
Mr Pasi said his organisation would require large numbers of peo­ple equiva­lent to its current staff lev­els to monitor production at mines, making it neces­sary to get connected with the mines electronically.

The new system will enable Zimra to monitor production at companies and compare whether what the com­panies ultimately pay in taxes tallied with levels of production.

Last year Zimra collected US$2,5 bil­lion in revenue although Finance Min­ister Tendai Biti acknowledged in his budget statement that Govern­ment was being prejudiced of poten­tial rev­enue by mining companies largely through under-declarations.
The organisation has collected US$723 million in the first quarter of this year.
Apart from monitoring production at companies, the new system will also expedite tax payments electroni­cally.

Zimra director for information and communication technology and infra­structure, Mr Tjiyapo Velempini, said they had already engaged CBZ Hold­ings and Kingdom Bank for a pilot proj­ect on the sys­tem.

“We have been installing servers that will allow us to integrate with var­ious organisations such as the Central Vehi­cle Registry, the Deeds Office, the Reg­istrar General, Zinara, clearing agents and others,” he said.
He said under the pilot project with the two banks, organisations will be able to make their payments without visiting Zimra offices and will do away with receipts and paperwork.

Meanwhile, Mr Pasi acknowledged that corruption was a problem in his organisation and has engaged the ZPS on the issue.
“We have talked with the Commis­sioner of Prisons that we may take new recruits to the prisons for a day or two so that we may be ‘shocked’ (by the con­ditions) and those on the mar­gins would be swayed before they commit any offence,” he said.

He, however, bemoaned the involve­ment of law enforcement agents in cor­ruption at the border posts saying this was making it diffi­cult for them to curb the vice.
He said they were currently investi­gating a case involving law enforce­ment agents that facilitated a person to leave the country with cash above that stipu­lated by the law.

The person paid a US$250 bribe to be allowed to leave with US$18 000 instead of US$10 000 as required by the law.

 

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