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Ivan Zhakata

Herald Correspondent

THE Zimbabwe Revenue Authority (Zimra) has introduced a block management system (BMS) which uses geographical locations to collect tax from taxpayers.

The BMS involves zoning of taxpayers by geographical location and assigning Zimra officials to manage all taxpayers within a given zone or block.

Zimra said the BMS was implemented with effect from January 1 this year.

“The zoning will include Central Business Districts, flea markets, farms, industrial areas as well as informal traders’ and rural business locations,” Zimra said.

“Zimra officers will engage all taxpayers through door-to-door visits checking on all compliance issues including daily sales schedules, (templates will be provided), registration for tax purposes, returns submission, payment of taxes and fiscalisation.

“BMS strives to increase efficiency to ZIMRA clients by bringing closer some of the services taxpayers require such as taxpayer education, online returns filing, registration, audits and queries handling.”

The Authority said it intended to build partnerships with all its taxpayers for a better Zimbabwe.

“Zimra urges all taxpayers to fully cooperate and support its officers in the implementation of the BMS. Taxpayers are encouraged to approach any nearest Zimra office if they have queries regarding authenticity and identities of visiting officials or contact Zimra through toll-free numbers or social media platforms.”

Zimra said for easy identification, their officials will be wearing Zimra identity cards.

Presenting the 2023 National Budget, Finance and Economic Development Minister, Professor Mthuli Ncube took a tough stance against tax defaulters as he sought to close all leaks and enhance revenue collection efforts.

The minister said businesses and companies have abused tax relief measures and incentives offered for their benefit.

On the deferment of value added tax (VAT), he said whereas the VAT deferment facility was put in place to mitigate the cash flow impact on business, the benevolence has, however, been abused by most of the beneficiaries through non-payment after the due date.

As a result, he proposed to review the minimum threshold for the deferment facility from the current US$500 000 to US$1 million, with effect from January 1, 2023, in order to mitigate revenue loss to the fiscus.