Value Added Tax refunds to improve tax-payer confidence

By Stanley James

Zimbabwe is moving ahead with tax refunds to industry and commerce in a move which reflects the transparency of the Second Republic in revenue collection.

This week government through the Zimbabwe Revenue Authority (ZIMRA announced it paid over two billion dollars in tax refunds to industry and commerce for the second quarter.  

Tax expert Simon Gwenzi says the move indicates transparency given that companies which are overcharged will be repaid.

“It is just a clear situation of how the authorities are moving towards enhancing the collection systems so that more people can actually pay their taxes,” said Gwenzi.

Another tax expert, Dumisani Ngwenya explained how firms accrue tax refunds and the impact to the economy.

“The refunds mainly accrue if firms  pay more than what they are supposed to pay but the key issue is mainly to do with urgent processing of the claims so that the beneficiaries get what they are being owed on time.”

Yet another expert Tendai Mavhima spoke on the effects of a sustained tax refunding system.     

“Confidence is when the authorities adhere to their strict commitment on ethics such that they do not prejudice what they are not obliged so if the refunds are there then there is that element of trust,” he said.

According to the National Development Strategy One, an efficient and transparent taxation system will boost Zimbabwe’s revenue coffers.

The post Value Added Tax refunds to improve tax-payer confidence appeared first on ZBC NEWS.

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