Zimra imports more fiscalised devices
was it not for inefficiencies by suppliers of the gadgets.
“Our focus is to fiscalise every supplier of goods and services so that we get the business activity that is taking place in this country. We have not yet reached a satisfactory level in terms of fiscalisation but I want to believe that with the inclusion of suppliers that have the resources to import the gadgets in bigger quantities, I am sure we will get to a satisfactory level by December,” he said.
The fiscalisation project was introduced seven years ago when the Government made fiscalisation legally enforceable by gazetting Statutory Instrument (SI) 104 of 2010. According to the statutory instrument, all eligible registered operators are required to commence recording of transactions using fiscalised devices. Failure to comply with the requirement to use fiscalised electronic devices for the recording of all business transactions is an offence and renders the operator liable to a fine or imprisonment.
The Government introduced the electronic fiscalised cash registers and fiscal memory devices with the objective to plug leakages in VAT payment. Fiscalisation is a computerised systemisation of cash register devices to enable them to record in, real-time, sales and other tax information for use by the tax authorities in Value Added Tax (VAT) administration.
Since the introduction of the fiscalisation, Zimra has been working on progress to improve the implementation of the system by businesses. The system also entailed that businesses in VAT categories A, B and D should have fiscalised their operations by December last year.
Categories A and B are those registered operators who are submitting returns after every two months while category D clients submit returns on a seasonal basis, or as agreed with the commissioner-general. Companies that fall in category C are those with an annual turnover of $240 000.
Economic commentator and business leader Dr Lucky Mlilo said acquiring the fiscal devices remains a big challenge.
“The biggest challenge that businesspeople are facing is in the acquisition of these fiscal devices. The companies that are supposed to issue these gadgets do not stock these devices and expect the members to make a full payment for the device before it is supplied and this takes four to six weeks to deliver,” said Dr Mlilo. He further lamented the cost of the fiscal devices. “The cost of these devices is so exorbitant compared to the cost of acquiring them from out of the country. We understand and appreciate the duty rebate that these companies are being given for importing these gadgets but they are still very expensive.
“The ability by businesspeople to claim 50 percent of the cost against the output tax does not help them as they are already struggling with other operating challenges. We would like to implore the Ministry of Finance to help us reach a workable solution with the fiscal device suppliers, especially the issue of cost,” said Dr Mlilo.