The Zimbabwe Revenue Authority (Zimra) Commissioner General Faith Mazani claims that Zimbabweans pay few taxes when compared to other regional countries.
There have been concerns by both corporates and the consuming public that Zimbabwe’s current tax regime is punitive especially the recently imposed 2 cents tax. However, Mazani says that such a perception is wrong. She had this to say
If we look at the effective tax rates, Zimbabwe is not taxed any higher than any other country.
- Click link to receive Pindula News on WhatsApp: https://wa.me/263733047077?text=add
I will give you an example of corporate tax. I remember when I was in Swaziland; we reduced the company tax from 28 per cent to be like South Africa on 27 per cent.
So South Africa and Swaziland are on 27 per cent and we are on 25 per cent corporate tax, and that’s lower. It actually compares favourably with Sub-Saharan Africa countries as well. So it’s not true that Zimbabweans are taxed higher.
Our VAT is not the highest rate. Yes, South Africa was at 14 per cent together with all the SACU countries (Southern African Customs Union) but South Africa went to 15 per cent which is where we are.
So comparatively, we are not the highest taxed people. The only difference is that our taxes are paid by a few because a lot of people are not compliant.
She added that the problem with Zimbabwe when it comes to taxation is the problem of non-compliance.
What you find most unfortunate is that because of non-compliance or low compliance levels, our taxes are being paid by a few that are compliant and it is important that everybody pays their fair share.
That will see Government moderating tax rates or even lower them from where they are now.