The Zimbabwe Revenue Authority (ZIMRA) says the private sector’s tax debt, which stands at nearly $3.4 billion has become unsustainable and that only 25 percent of registered taxpayers are paid up.
“Allow me to speak on a very serious issue that is confronting our country…… Zimbabwe is sitting with an unsustainable unprecedented tax debt situation,” ZIMRA commissioner general, Faith Mazani told a business meeting in Bulawayo today.
“As at the end of the first quarter on March 31 2018, the authorities tax debt was sitting at $4.227 billion and of this, 80% is owed by the private sector (and the balance by government.)”
The southern African nation, which has not been able to access foreign funding since 1999 when it defaulted on its debt, finances its entire budget on taxes, making collections crucial.
Zimbabwean businesses say they are struggling with a lack of cheap capital and shortages of foreign currency which have made it hard to pay for crucial imports and external obligations.
Mazani said Zimbabwe had less than 300 000 registered taxpayers, which does not match the level of income and business activities in the country.
“It’s only about a quarter of registered taxpayers complying….This leaves the tax burden on the shoulders of a few companies and individuals.”- The Source