Zimra credits anti-corruption hotline for increase in revenue collection
THE Zimbabwe Revenue Authority (Zimra) says its hotline facility has greatly aided in the fight against corruption resulting increased revenue collections in the first quarter of this year.
Zimra surpassed the $812,94 million gross revenue collection target by about six percent to $862,47 million buoyed by tax compliance and support from taxpayers.
During the period under review, net collections after refunds were two percent above target and amounted to $826.63 million.
Zimra acting commissioner general, Mr Happias Kuzvinzwa, told journalists during a media workshop in Bulawayo yesterday that the authority’s fight against corruption has exposed numerous illicit dealings and that measures towards enhancing service efficiency had started bearing fruit.
He acknowledged widespread public concern over alleged underhand dealings involving the tax collector and some unscrupulous clients who connive to evade tax and demand or seek bribes.
Although the Zimra boss could not be drawn into disclosing the number of people that have been arrested and the value of derived from the system since the launch of the anti-corruption hotline in May last year, Mr Kuzvinzwa said the authority would continue to deal with corruption ruthlessly as it was destroying the economy.
“Zimra has zero tolerance on corruption and a number of strategies have been put in place, key among them is the toll-free hotline introduced in May 2016. The hotline is managed by an independent service provider and is used for reporting corruption cases relating to Zimra. The hotline has helped expose corrupt activities, which the authority has acted on and continues to work on,” he said.
Mr Kuzvinzwa said the hotline and other strategies to fight corruption including asset declarations and lifestyle audits for staff members were being rolled out.
“In addition to the hotline, other strategies for fighting corruption that we have implemented include . . . disciplinary action in accordance with the Zimra code of conduct, and closed circuit television systems installed at some of the border posts.
“Zimra has a whistle-blower facility that is meant to encourage members of the public to report cases of tax evasion and underhand dealings. Under the facility, any individual who provides specific information, which results in the recovery of revenue, is entitled to 10 percent of the recovered amount,” he said, adding that the identity of the informant is protected throughout the process of investigation and conclusion of the case.
The Government has also introduced electronic fiscalised cash registers and fiscal memory devices with the objective to plug leakages in Value Added Tax payment by businesses.
Fiscalisation requires that all businesses under category C register for VAT and operators who were fiscalised in term of the VAT regulations of 2010 but had not interfaced their fiscal devices with the Zimra server were required to have done so by January 1 this year.
The system also entails that businesses in VAT categories A, B and D should have fiscalised their operations by the stipulated date.
Treasury has also extended invitations to suppliers of fiscal gadgets to improve the availability and affordability of the devices. The ongoing exercise to connect the fiscal devices to the Zimra server is expected to enhance the authority’s monitoring efforts by enabling real-time submission of transmission data.
Mr Kuzvinzwa said their electronic services such as the e-services portal deployed in 2015 has also brought considerable convenience to clients as they can apply for tax clearance certificates online and carry out other Zimrarelated processes remotely.
“With the facility, clients can make online applications for Business Partner Numbers, and submit tax returns online. These strategies that Zimra implemented are beginning to bear fruit and our first quarter 2017 revenue collection figures are a testimony to the positive trajectory,” he said.
Mr Kuzvinzwa said the authority’s electronic cargo tracking system meant to curb transit fraud and illegal dumping of goods on the local market would be launched by Finance Minister Patrick Chinamasa next week.
“The cargo tracking system involves the use of modern electronic sealing devices, which are put on transit cargo at the port of entry and removed at the port of exit. The tracking system is integrated into the existing ASYCUDA World system and allows realtime tracking of the cargo, up to the point of exit.
“Electronic seal devices report to Zimra in real-time any violations, that include seal and cargo tampering. It also reports real time incidents when cargo goes off route or outside the geo-fenced route,” he said.
Mr Kuzvinzwa challenged taxpayers to pay taxes on time and in full adding that paying taxes was also a measure of the level of patriotism a tax paying people have to their own country.
Earlier in her address, Zimra board secretary and director for legal and corporate services Ms Florence Jambwa acknowledged the important role played by the media in creating and shaping public perceptions and opinion, informing and strengthening society.
“There are times when you (journalists) feel that Zimra is being frugal with information, especially with regards to intricate details pertaining to taxpayers. In terms of Section 34A of the Revenue Authority Act (Chapter 23:11), Zimra is not permitted to divulge specific information pertaining to its clients to a third party, including the media. Giving out such information will attract a jail sentence . . . I am sure that you agree with me that by their nature, tax and customs issues are very sensitive and they must be handled with extreme caution,” she said. — @okazunga