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Zimbabwe’s largest mobile network operator (MNO) by Subscriber Base, Econet Wireless Zimbabwe, has increased tariffs and bundle prices with effect from 1 January 2023.
In a public notice, Econet said the adjustment is to accommodate the 0.5 percent value-added tax (VAT) increase that came into effect on 1 January. Econet said:
<blockquote>
Please take note that our tariffs &amp; bundle prices have been adjusted in line with VAT changes gazetted in the Finance Act (No.2), 2022 effective 1 Jan 2023.
</blockquote>
In his 2023 national budget statement, Finance and Economic Development Minister, Mthuli Ncube increased VAT from 14.5 percent to 15 percent.
Ncube said the country’s VAT rates of 15 percent are comparatively lower than the SADC regional standard VAT rate, which averages 16 percent.

Pindula News

Econet Increases Tariffs And Bundle Prices

Finance and Economic Development Minister Mthuli has proposed to raise value-added tax (VAT) from the current 14.5 percent to 15 percent with effect from 1 January 2023.
Presenting his ZWL$4.2 trillion (about US$6.5 billion) budget on Thursday, at the new Parliament building in Mt Hampden, near Harare, Ncube said on average, SADC countries charge 16 percent VAT. He said:
<blockquote>
Zimbabwe charges a comparatively lower rate of 14.5 percent. The VAT rate was reduced from 15 percent with effect from January 1, 2020, in order to support households during the peak period of the COVID-19 pandemic… I propose to reinstate the VAT rate to the previous rate of 15 percent with effect from January 1, 2023.
</blockquote>
Consumers pay VAT when they buy food, and pay for water, electricity, and other services.
Ncube also removed the suspension of duty on basic food items such as rice, maize meal, bath soap, cooking oil and maize meal amongst others. He said:
<blockquote>
The suspension of duty, which expired on November 16, 2022, will not be extended.
The government will, however, monitor prices of basic commodities with a view to ensuring responsible pricing and affordability, failure of which the suspension will be reinstated.
</blockquote>
Ncube, however, said he was reducing the Intermediate Money Transfer Tax (IMTT) on domestic foreign currency transfers from 4 percent to 2 percent.
Meanwhile, former Finance Minister Tendai Biti described the restoration of duties on basic commodities particularly while approaching a festive season as “equally sadistic and bankrupt.” | <a href="https://www.zimlive.com/2022/11/ncube-raises-vat-restores-duty-on-basics-in-sadistic-and-bankrupt-2023-budget/">ZimLive</a>

Ncube Raises VAT, Restores Duty On Basic Food Items

The <a href="https://www.pindula.co.zw/Zimbabwe_Revenue_Authority" rel="noopener noreferrer" target="_blank">Zimbabwe Revenue Authority (ZIMRA)</a> on Sunday called on businesses to be ready to effect a 0.5 percentage point reduction in value-added tax (VAT) which comes into effect on January 1 2020.
The tax collector’s directive comes after Finance and Economic Development Minister <a href="https://www.pindula.co.zw/Mthuli_Ncube" rel="noopener noreferrer" target="_blank">Mthuli Ncube</a>, in his 2020 National Budget Presentation, announced a reduction of VAT to 14.5 per cent from 15 per cent effective next month. ZIMRA said in a statement:
<blockquote>Registered operators, businesses registered for VAT and those that require to register, should ensure that they are ready to implement the new rate of tax.
Accounting systems, transacting systems and devices for recording taxable transactions (fiscal devices) should be adjusted accordingly in time for implementation.</blockquote>
According to ZIMRA, VAT is an indirect tax on consumption, charged on the supply of taxable goods and services. It is levied on transactions rather than directly on income or profit and is also levied on the importation of goods and services.
The tax was introduced in 2004 to replace the former sales tax regime.
<h4>More: <a href="http://newziana.co.zw/2019/12/29/zimra-readies-business-for-vat-reduction/" rel="noopener noreferrer" target="_blank">New Ziana</a>, <a href="https://www.zimra.co.zw/domestic-taxes/vat/mechanics-of-vat" rel="noopener noreferrer" target="_blank">ZIMRA</a></h4>

ZIMRA Directs Businesses To Be Ready For VAT Reduction

In a statement Zimra head of corporate communications Mr Canisio Mudzimu said that the Zimbabwe Revenue Authority (Zimra) surpassed gross and net revenue targets for January 2017 by over four percent and three percent respectively against a target of $254,10 million.
Said Mudzimu:
<blockquote>The authority collected gross and net revenue amounting to $264.79 million and $262.21 million respectively, against a target of $254.10 million. This translates to a growth in net revenue of over 13 percent when compared to the $232.01 million, which was collected during the same period last year. The sterling performance was mainly driven by contributions from Value Added Tax (VAT) on local sales, which were 41 percent above target with total net collections of $76.90 million.</blockquote>
The increase in revenue has been attributed to increased consumption of goods, which attract VAT during the festive season, coupled with use of plastic money and the ongoing fiscalisation project whose aim is to plug revenue leakages. Last year, the Government missed its revenue collection target by four percent at $3,46 billion below the targeted $3,6 billion with Zimra blaming the negative performance to unwillingness by tax agents to meet obligations.
More: <a href="http://www.chronicle.co.zw/zimra-smiles-to-the-bank-surpasses-january-2017-revenue-target/">Chronicle</a>

Zimra makes $262.21 million in net revenue, surpasses January revenue target

The <a href="http://www.pindula.co.zw/Zimbabwe_Revenue_Authority">Zimbabwe Revenue Authority (Zimra)</a>, has given companies up until tomorrow to link their fiscal devices with the Zimra server.
A notice by Zimra reads:
<blockquote>All clients registered for Value Added Tax (VAT) under category C and who were fiscalised in terms of the VAT regulations of 2010 but have not yet interfaced or linked their fiscal devices with the Zimra server, should do so by January 2017. Failure to interface fiscal devices with the Zimra server by 31 December 2016 may result in Zimra not issuing tax clearance certificates for the year 2017, and may also attract appropriate penalties.</blockquote>
Companies that fall in category C are those with an annual turnover of $240 000.Categories A and B are those registered operators who are submitting returns after every two months while category D clients submit returns on a seasonal basis, or as agreed with the Commissioner General.
More: <a href="http://www.chronicle.co.zw/zimra-gives-ultimatum-business-have-up-to-tomorrow-to-comply-with-fiscalisation-process/">Chronicle</a>

Zimra gives businesses until tomorrow to link up their fiscal devices with the Zimra server

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