Zim ‘Robbed’ Of $1billion Annually – ZIMRA
23 June 2016
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, Willia-Bonyongwe
Willia-Bonyongwe

Goods smugglers in retail and the business community are suspected of robbing the country of $1 billion annually, thus draining the fiscus, the Zimbabwe Revenue Authority (Zimra) has said.
The revenue loss, more than a quarter of the 2016 National Budget, came as government has been battling to meet its monthly commitments such as paying salaries to civil servants and service providers on time.
Responding to media inquiries, Zimra board chairperson Willia Bonyongwe said the increased levels of smuggling explained why some products were being sold at low prices.
“What this tells us about smuggling is that people are able to sell goods at very low prices, almost close to the prices obtained in source markets such as China. Legitimate players, who are law abiding, end up being crowded out.
These people also are truant with their VAT [value added tax], Paye [pay as you earn] and other statutory obligations. The extent can be gauged by the impact on legitimate business in tyre trading, electrical goods, fuel and foodstuffs. I would agree that on the whole, loss to the fiscus could be up to a billion annually,” she said.
“Those who smuggle say it is because duties are high. I say tax is high because of the evaders. If everyone paid their taxes, government could actually find leeway to reduce duty.”
In the past months, revenue heads have been under performing after government failed to plug loopholes leading to smuggling.
Recently, government identified transit truck vehicles as fuelling smuggling by claiming the goods were headed for other destinations other than Zimbabwe.
Apart from transit truckers, individuals are said to be moving goods by faking documentation at borders and reducing the amount on purchased goods to pay lower duties.
In his monetary policy statement, central bank governor, John Mangudya, early this year, said individuals and corporates externalised $1,8 billion in 2015 fuelling the cash shortages.
“Those who smuggle have low margins and can sell for half the price, hence, there will be demand. While the smuggler is breaking the law and ought to be punished, the responsibility to curb smuggling goes beyond Zimra and beyond the smuggler, it is something that needs to be tackled holistically,” Bonyongwe said.
Industry and Commerce minister Mike Bimha recently told NewsDay’s sister paper, The Standard that government was working on a new tracking system to deal with smuggling.

5 Replies to “Zim ‘Robbed’ Of $1billion Annually – ZIMRA”

  1. It is ZANU PF ZIMRA thugs robbing the government and in fact it ZANU PF robbing ZANU PF, since ZANU PF has failed to make a difference between the country ant itself. You staff ZIMRA with your ZANU PF thugs and then you tell us people are smuggling, when the same government is even following and killing every small thing which is anti- Mugabe. Why would ZIMRA fail to to see the smuggling of goods worth a US$1 billion dollars? People are not stupid and naive to accept such silly statements. This is the ZANU PF norm. Looting in billions of dollars. Looting diamonds and looting everything and now they even want to kill more people under the guise of dissidents. How can one be called a dissident just because has differed in opinion with an insane great grandfather – Mugabe.

  2. so why are vendors who import (US$200) R3000 worth of goods traumatised at the border when truck loads are allowed in?

  3. so why are vendors who import (US$200) R3000 worth of goods traumatised at the border when truck loads are allowed in?

  4. I have no problem with smugglers who end up sell their loot at low prices because the ultimate winner is the consumer and there are literally no industry to protect in Zimbabwe! If duty is paid to treasury, very little if any of it will benefit the public due to corrupt authorities. Honestly speaking, reducing duties will encourage importers to pay their duties in full as the risk of not doing so won’t be worthwhile. Its unfortunate the authorities inculcated a spirit of evading duties because of high tariffs and efforts to encourage compliance will certainly yield limited success.

  5. I have no problem with smugglers who end up sell their loot at low prices because the ultimate winner is the consumer and there are literally no industry to protect in Zimbabwe! If duty is paid to treasury, very little if any of it will benefit the public due to corrupt authorities. Honestly speaking, reducing duties will encourage importers to pay their duties in full as the risk of not doing so won’t be worthwhile. Its unfortunate the authorities inculcated a spirit of evading duties because of high tariffs and efforts to encourage compliance will certainly yield limited success.

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