Zimra’s efficiency bid worth imitating

THE year 2016 saw the introduction of e-services by the Zimbabwe Revenue Authority (Zimra), and most, if not all, companies are now on the platform.

Beginning this year, the Authority’s clients registered for Value Added Tax under “Category C”. Those with an annual turnover of US$240 000 will have their systems interfaced with those of Zimra before they get a tax clearance certificate.

In addition to maximising efficiency, Zimra’s reforms are most likely to plug revenue leakages and minimise tax evasion.

It is not surprising therefore that some rogue companies have since been exposed.

Technology now offers limitless possibilities for industry, it now provides countless opportunities to maximise efficiency.

When a business is operating efficiently, it frees up more time for mar- keting and also improves the way it does business.

This ultimately means that it has quite a fair chance to be profitable.

On the other hand, not only does technology enhance Zimra’s efficiency, but it also helps to save both time and money.

Under the new system, if tax records are not up to date, the platform will not print the tax clearance and by interfacing the system, Zimra can be able to access records from a central system.

Manual systems can be time consuming and error prone.

When technology is used for repetitive operations, mistakes are reduced or eliminated, and the time it takes to complete the task is greatly reduced.

It is the same system that is used by law enforcement agents in other jurisdictions where there are cameras on every street and traffic light. More often than not, tickets for traffic violations are linked to a central system which makes it difficult for offending parties to renew their licences before their traffic fines are paid.

In this way, enforcing the law becomes practical.

In essence, such a system improves road rules compliance, increases collections by law enforcement agents and also reduces corruption. In addition to making processes quicker, technology also makes it easy to keep information up to date.

Instead of searching through a room of file cabinets and trying to guess how information was stored in order to update a customer address, a few clicks of the mouse can help one pull up a customer file from a database.

What used to take several minutes to an hour can now be done instantly.

So, the direction that Zimra is taking is quite instructive for other Government departments and agencies.

There is a fundamental need to shift from manual systems to automated platforms. Yes, a lot of time and money might be needed to establish these sys- tems.

At times all it needs is dedication, commitment and focus.

There is need to channel our collective energy and focus towards productive issues. There is no doubt that technology is shaping the world and the more we embrace it the more we achieve success.

Furthermore, the world is changing and we need to change with it.

Business systems and operations are gradually evolving and business leaders need to quickly adapt to change and be able to make viable decisions.

This is not only for Government agencies and departments, but critical sectors such as mining and agriculture need efficient systems in order to be profitable.

In the mining sector, technology ensures increased throughput and value addition, which, essentially, results in more revenues.

So we can get more than enough foreign currency from our minerals and agricultural produce if we implement the correct technology and controls.

One advantage of being technologically advanced is the ability to react more quickly than larger competitors.

But if your company network is frequently down, sluggish, or unsecured, that competitive advantage is eroded.

A secure, reliable, self-defending network based on intelligent routers and switches provide businesses with maximum agility by providing reliable, secure access to business intelligence. What’s more, a secure, reliable network infrastructure provides the necessary foundation for a number of efficiency-enhancing technologies and solutions such as IP communications.

Every year, organisations should try to determine how well their technology solutions map to their business objectives.

The companies who have a plan and keep it updated are most likely to streamline their operations and outperform their competition. Organi- sations that perform well always get the best technology to maximise efficiency, it may be in the form of the latest plant and equipment or any other tool to enhance performance.

The fact that many local companies rely on antiquated machinery and irrelevant technologies is an indictment on the country’s ability to be a strong competitor in regional and international trade.

While Zimra’s reforms are comforting, the private sector also needs to lead the way. In an environment where local industry is now seemingly protected from outside competition, it must increasingly work towards improving efficiencies.

Without such reforms, the efforts that are being made by Government will come to naught.

There is a slot of work to be done in 2017 and it has to be done.

Taurai Changwa is a member of the Institute of Chartered Accountants of Zimbabwe and an Estate Administrator. He is the managing director of SAFIC Consultants. He writes in his personal capacity and can be contacted on tauraichangwa1@gmail. com or whatsapp 0772374784.