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Willia Bonyongwe

Zimbabwe is experiencing economic challenges that include deindustrialisation, disinvestment, unemployment and foreign currency shortages among other things that are causing serious headaches to national economic planners. Big companies are spending time queueing for foreign currency at the Reserve Bank of Zimbabwe, while others that see the wait too long, have resorted to buying the foreign currency on the unofficial market. Yes, the money is expensive and this is threatening to choke industry if monetary authorities do not take urgent measures that stimulate industrial growth and production.

Some small businesses are struggling to operate in a market where consumers’ disposable income continues to shrink under an environment where no economist appears to be proffering a convincing explanation. Cases of companies going for months without paying salaries continue to dominate newspapers headlines and surely, the tax man, the Zimbabwe Revenue Authority (Zimra), cannot also escape unhurt.

It is against this backdrop that proposals by the Zimra board chairperson Mrs Willia Bonyongwe to increase fines on tax offences across the board as part of efforts to promote compliance, make intriguing reading. We reported yesterday that the revenue collector is currently lobbying for promulgation of more punitive fines on tax offences through Finance and Economic Development Minister Dr Ignatius Chombo’s 2018 National Budget.

This comes amid concerns that tax offenders do not find the current fines regime punitive enough. As the country grapples with possible solutions to enforce tax compliance, debate rages on whether getting tough on companies that have already proved that they are failing to stand on their feet can yield benefits or not. At the same time, should the country continue to overburden those law-abiding corporate citizens while others enjoy public facilities for free.

This is a delicate situation that need to be handled meticulously to avoid offsetting the state of equilibrium. Critically looking into the matter, it\s grossly unfair for a few corporates and individuals to be forced to carry the burden while others evade taxes with impunity. It is our hope that when Mrs Bonyongwe sits with her board to deliberate this issue, they adopt a win-win approach where those who evade tax must be penalised heavily, but in manner that does not kill the companies.

It must become a culture for Zimbabweans to be law abiding, be good corporate citizens who pay their dues to the taxman without being followed or reminded to do so. In fact, Zimbabwe is tolerant with tax evaders compared to other countries in some parts of the world. It is our humble submission that citizens and companies that should approach Zimra with proposals to clear their tax dues not to the contrary.

Those who evade tax and use the money to buy luxurious goods and vehicles, who do they think will build roads for them to cruise with their state- of-the-art cars? Who will provide for public lighting for them to have safe communities and pay decent salaries for our civil servants so that they shun corruption. We, therefore, propose that the fines should be deterrent enough and should be done according to international best practices.

However, inasmuch as Zimra wants money through taxation, all should not be done in a manner that kills the hen that lays the golden eggs. In this school of thought, surely an all-inclusive approach should be adopted during Zimra’s hunt for tax evaders. The companies that are dogding taxation should be engaged and educated on the consequences of not contributing to national development before a guillotine chops off their heads.

Zimra allowed some companies to go for over six years without paying tax and it boggles the mind to think that the same can today pay the amount backdated after being slapped with heavy penalties. Zimra should not be spared the cane here because it allowed these companies, small or big, to go unpunished for a long time. As the taxman moots these punitive measures, surely let it be done in a manner that does not kill the remaining few companies battling to make it in this challenging environment.