Zimra risks getting permanent negative scar

26 Jul, 2014 - 00:07 0 Views

The Sunday News

Economic Focus
WHEN the country started experiencing economic challenges in the early 2000s, one area that suffered most was the financial sector.
Suddenly money lost value to the extent that authorities were forced to cut zeros and even ration the cash which individuals could have at a time.
So dire was the situation that at one time the central bank mounted road blocks to search people who were suspected of moving around with sacks of money.

In the process banks were forced to limit withdrawals and for many people it became a nightmare to access your own money.
It was a painful experience that all those who witnessed it never wish to go through it again.

As the suffering was reaching tipping point, many simply stopped bothering themselves with withdrawing the money whose value was changing each hour.

The stroke came, however, when the Government introduced the use of multi-currencies in 2009.
While this brought relief to the inflationary environment that was prevailing, it left a huge issue which has not been resolved to date.
What happened to the people’s money that was locked in the banks? Government has on one or two occasions promised to address the issue but nothing has happened.

The greatest casualty to this was the banking sector. With the notoriety it gained during the Zim dollar era, it was always evident that it would be a huge task to attract depositors back.

Even the foreign currency has failed to completely attract people back into banking. The sector admits, as such, most deposits are transitory.
There are people who are using banks to pass the money from one hand to another and not to save.

That is why many banks are struggling to survive and have resorted to punitive charges to remain afloat.
More critical, the public prefer to keep their money under pillows and car boots.

There have been reports of people losing huge quantities of money and it has been suggested that if Government had to search everyone getting into town every morning they would accumulate a lot of money, probably more than what our banks have.

I should admit, I am one of the people who up to today has failed to trust banks again.
It’s a pity because even those who tell us everyday to keep money in the banks are not doing it, even bank workers and managers. Talk to them privately, and they will tell you any cent that gets into their account will be withdrawn.

The financial sector and banks in particular brought this upon themselves and it might take time regain normalcy.
Such a situation seems to be manifesting itself at the Zimbabwe Revenue Authority. The country’s revenue collector risks going the banking sector way.

It is no doubt that with each day and with all the reports Zimra is receiving it will soon be another institution which many people will soon despise just by the mention of its name.

It used to be just an institution that many people knew was responsible for revenue collection. It is its mandate of course but it seems those heading it have failed to appreciate the prevailing economic situation.

I am sure all things constant, no company or individual will not want to pay tax.
However, Zimra seems to have adopted a pay-at-all-cost attitude and is ignoring what these companies are going through. It seems it is not even listening and trying to understand why some of the companies sometimes fail to remit the tax.

First the war was against small scale businesses but it seems like cancer, it is now spreading everywhere. Reports have indicated that Zimra has been on a garnishing spree on accounts for companies they want to force to pay tax.

Some of the stories are sad. Some companies allege that in meetings, Zimra staff sound human promising to accept payment plans but will turn tomorrow and act like raging bulls under the influence of rising testosterone levels.

Some companies have now interpreted the Zimra approach of “talking” as just a way of getting close and check operations so that they can pounce.

Zimra must instead try to understand why some companies are failing to remit the tax in time. What help does it bring crippling companies  to garnish their accounts?

The approach Zimra is taking actually kills the company and in the end some of them will simply close and the tax collector and the country at large then lose more.

Companies must pay tax of course but Zimra must also review the way they try to force them to meet this obligation.
If you ask anyone from a barber to a conglomerate’s leader, it seems just mentioning the word Zimra is enough to draw scorn.

At the just ended Mine Entra exhibition in Bulawayo, most exhibitors I talked to are really not happy with Zimra. It is now even difficult for companies and individuals to celebrate any small success because they fear the next morning Zimra will be knocking at their doors.

Soon even noble demands by Zimra will be treated with scorn. Like what happened in the financial sector, Zimra risks developing into the same.

It risks completely alienating itself from the wheels of the economy and experience must inform them that banks did the same and today are struggling to harness money from depositors.

Zimra risks creating a hardened type of industry that will resist its moves for as long as they go for the “respect me, I am the big brother” mentality.

Feedback
Hello, I agree with you 110 percent. The engines that used to be produced in the 20th century are quite different from today’s’ engines. Today’s engines are relatively fragile but paradoxically efficient. I am not an expert in that field but its common knowledge. The customer must be king, let him/her choose. — 0733540287.

Hi, hope you are well. I like your Sunday News 13-19 July contribution on blended fuel in Zimbabwe. I have in the past faced problems with the fuel. Had my complaints with the garages where I refuel and one had guys from Zera who came for interviews and have all communication in email forms. Last week I sent another email to the same guy at Zera but I got no response. Now six months after their visit,  I am just carrying my car keys because the engine ceased or simply isifile, can you believe my most prized possession is dead. — 0772315662.

Well balanced article on fuel, really liked it. — 0712301076.

Brilliant piece on fuel blending. — 0772851275.

Your article on fuel blending is an excellent argument. The problem is that we have seen ministers behaving awkwardly. We should promulgate legislation that defines ministers as policy implementers and not makers. Let’s have policies debated in parliament so there is input from those we voted into office and various parliamentary portfolio committees. Some people are turning the Government into a circus. — 0779664150.

For feedback get in touch at [email protected] <mailto:[email protected]> or SMS/Whatsup to 0777390875

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