Zimbabwe: Zimra to review fiscalisation system
2 May 2014
The Zimbabwe Revenue Authority (Zimra) is reviewing the fiscalisation system after some challenges were encountered since its introduction a few years ago.
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. Speaking on the sidelines of a Zimra Business Forum recently, Zimra commissioner-general Gershem Pasi said the review would result in the introduction of more user-friendly equipment. He said when the system was introduced in 2010, Zimra did not have the capacity to take data from fiscalised machines.
“The technology that we had identified was not appropriate,” Pasi said. “It was costing more to convert to be compliant. We are reviewing that (system) and will be coming up with a more friendly system.”
The Finance ministry and Zimra launched electronic fiscalised cash registers and fiscal memory devices in 2010 to plug leakages in value-added tax (VAT).
The system was for companies that had annual turnover of $240 000 and above to have the devices. Failure to comply meant the companies had to pay a $400 fine or face imprisonment for a period not exceeding 12 months.
Companies have been arguing they were not in a position to install the devices as the exercise required a lot of capital and would worsen their already dire financial position. Fiscalised devices are electronic gadgets which contain a “fiscal memory” which is permanently built into them to store tax information at the time of the sale. The government deadline for the fiscal devices to be installed was moved three times as the suppliers were failing to meet the demand.
Only two companies were licenced to sell the devices.
Source: News Day (Zimbabwe)