The Zimbabwe Revenue Authority (ZIMRA) has initiated a nationwide crackdown on businesses evading taxes and undermining the local ZiG currency. This effort aims to enhance resource mobilization to support national development projects as outlined in the National Development Strategy.
In a recent statement, ZIMRA announced the launch of an automated and confidential whistle-blowing platform, encouraging the public to report businesses that reject ZiG payments or falsely claim their Point of Sale (POS) machines are out of service. This initiative follows President Mnangagwa’s warning to economic saboteurs, emphasizing the government’s commitment to protecting citizens from exploitative practices that threaten the economy.
Some companies have been misleading consumers by inflating prices while displaying both ZiG and foreign currency prices. As a result, the ZiG has recently depreciated against the U.S. dollar in the black market, despite initial gains since its introduction in April, which helped contain inflation.
ZIMRA urged corporate citizens and individuals to report any malpractices related to currency refusal or malfunctioning POS machines, emphasizing that the whistle-blowing platform is secure and confidential. The authority highlighted the importance of everyone contributing to the fight against tax evasion and smuggling, as domestic tax revenue is crucial for infrastructure development in Zimbabwe.
Economist Marvelous Mandisodza endorsed ZIMRA’s measures, suggesting they would create demand for the ZiG and reduce rent-seeking behavior. He expressed hope for further actions from the Reserve Bank of Zimbabwe to stabilize the local currency.
Chris Mugaga, CEO of the Zimbabwe National Chamber of Commerce, stressed the need for stakeholder collaboration to support the ZiG and urged the central bank to adhere to its policy of not printing excessive money. He warned that failure to defend the ZiG could undermine efforts to maintain a stable local currency.
Industrialist Kurai Matsheza echoed these sentiments, advocating for a floating exchange rate to establish its own premium and cautioning against money printing. Meanwhile, businesses have faced criticism for setting prices based on black market rates, contributing to rising costs for consumers.
Market analysts have noted that the recent increases in the exchange rate lack justification based on current economic fundamentals.
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