Zimra cracks down on smugglers

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THE Zimbabwe Revenue Authority (Zimra) has initiated roadblocks and mall patrols as part of measures to enforce customs laws.
Smuggling is considered a major problem for the country as the Reserve Bank of Zimbabwe estimates that as much as US$1,5 billion is lost each year through illicit flows.
Zimra’s spokesperson Gladman Njanji said the patrols and roadblocks were cutting across sectors.
“The objective of the roadblocks and patrols is to enforce compliance with customs laws, specifically to check if imported goods were properly cleared on importation (duty paid),” Njanji said.

SME Association of Zimbabwe chief executive, Farai Mutambanengwe commended the patrols saying smugglers should be brought to book
“It is a legitimate exercise to try and identify whether or not customs laws are being adhered to when people are bringing in items,” Mutambanengwe said.
Economic analyst, Victor Bhoroma said it was commendable for Zimra to target tax evasion this way. He said the evaders were “mainly small businesses or informal players”.
“The implications are that going forward, these roadblocks, raids, or visits may become frequent as Zimra continues to cast its net wide. This a low-hanging fruit and way overdue,” Bhoroma said.
“The economy cannot grow with the high levels of informality, tax evasion, or smuggling we see at our border posts. A lot of trade is happening outside the formal economy and the state has to be in control.
“However, it will not have any significant impact on the economy as the identified areas are just a drop in the ocean and most tax evaders will find ways to hide real incomes.
“Zimra has to invest in ERP systems, simplify the taxation model, push the judiciary to criminalise and prosecute tax evasion ruthlessly and incentivise voluntary tax compliance,” he added. This also comes as formal business in Zimbabwe says it has been fighting for survival in the face of rising competition from informal traders, who more easily get away with breaking the law.
The chairperson of the Retail Association of Zimbabwe, Peggy Rambanapasi recently said smuggling was a serious challenge in the country.
“The level of smuggling of product into the informal sector is unprecedented in the history of this country… this worryingly also applies to fake sub-standard imported products,” she said.
“Goods should not be allowed to come into the country without payment of the correct duties. And importation of fake products should be banned unless there is proof that the importer is licensed by the trademark holder and is allowed to import the goods for resale in Zimbabwe.
“SARS in South Africa are enforcing all customs regulations and there is no reason why Zimra should not.”
This also comes as Zimra has introduced a new tax management system, which it believes is a game-changing solution for both domestic resource mobilisation and ease of doing business for taxpayers and agents.
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