Zimra readies business for VAT reduction

20 57

Harare, (New Ziana) –Tax collector, the Zimbabwe Revenue Authority (Zimra) said on Sunday local businesses must be ready to effect a 0.5 percentage point reduction in value added tax (VAT) which comes into effect on January 1.

The move, which will likely result in minor price reductions, follows the decision by Finance and Economic Development Minister, Professor Mthuli Ncube, in the 2020 national budget presented last month, to reduce VAT to 14.5 percent from 15 percent effective the beginning of the year.

“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,” Zimra said.

“Accounting systems, transacting systems and devices for recording taxable transactions (fiscal devices) should be adjusted accordingly in time for implementation.”

According to Zimra, VAT is an indirect tax on consumption, charged on the supply of taxable goods and services.

It is charged on transactions rather than directly on income or profit, and is also levied on the importation of goods and services.

VAT was introduced in 2004 to replace sales tax.

While the tax reduction is meant to be beneficial to the generality of the population, its effects are unlikely to be felt due to inflation, which keeps pushing up the prices of goods and services.

In the 2020 budget, that ran under the theme, “Gearing for Higher Productivity, Growth and Job Creation,” Prof Ncube announced a number of tax and non-tax incentives to stimulate domestic production in the local economy.

Experts argue that if consumers are able to pay less for products due to a tax cut, they will be encouraged to spend more money and in some instance even encourage them to work harder thereby increasing productivity.
New Ziana

  1. site web says

    I just want to tell you that I am newbie to blogs and seriously liked this web site. More than likely I’m want to bookmark your website . You definitely have very good writings. With thanks for sharing with us your web site.

  2. Kathlene Braker says

    I just want to say I am just beginner to blogging and site-building and certainly enjoyed your web page. More than likely I’m going to bookmark your blog post . You actually have fantastic articles and reviews. Thank you for sharing your blog site.

  3. frolep rotrem says

    Hello there, I found your blog via Google while searching for a related topic, your site came up, it looks great. I’ve bookmarked it in my google bookmarks.

  4. assistance Mac Geneve says

    I’d always want to be update on new blog posts on this site, saved to fav! .

  5. navigate to this site says

    I’m now not certain where you are getting your info, however good topic. I needs to spend a while studying much more or figuring out more. Thank you for great information I used to be searching for this information for my mission.

  6. rv power inverter says

    I will immediately grab your rss feed as I can’t find your email subscription link or newsletter service. Do you’ve any? Kindly let me know so that I could subscribe. Thanks.

  7. try here says

    I really appreciate this post. I?¦ve been looking everywhere for this! Thank goodness I found it on Bing. You’ve made my day! Thanks again

  8. you could try these out says

    I was wondering if you ever considered changing the layout of your website? Its very well written; I love what youve got to say. But maybe you could a little more in the way of content so people could connect with it better. Youve got an awful lot of text for only having 1 or 2 pictures. Maybe you could space it out better?

  9. look at here says

    I like this web blog very much so much wonderful information.

  10. other says

    Thanks , I’ve just been searching for information approximately this topic for a while and yours is the greatest I have discovered so far. However, what about the bottom line? Are you sure in regards to the supply?

  11. novelas de intriga says

    This is a very good tips especially to those new to blogosphere, brief and accurate information… Thanks for sharing this one. A must read article.

  12. Nice post. I learn something more challenging on different blogs everyday. It will always be stimulating to read content from other writers and practice a little something from their store. I’d prefer to use some with the content on my blog whether you don’t mind. Natually I’ll give you a link on your web blog. Thanks for sharing.

  13. find out more says

    Cool blog! Is your theme custom made or did you download it from somewhere? A design like yours with a few simple tweeks would really make my blog jump out. Please let me know where you got your theme. Bless you

  14. look there says

    Oh my goodness! an amazing article dude. Thanks However I’m experiencing challenge with ur rss . Don’t know why Unable to subscribe to it. Is there anybody getting equivalent rss drawback? Anybody who knows kindly respond. Thnkx

  15. read the article says

    I’m not sure exactly why but this site is loading very slow for me. Is anyone else having this problem or is it a issue on my end? I’ll check back later on and see if the problem still exists.

  16. site url says

    There is clearly a bundle to identify about this. I think you made some good points in features also.

  17. ncs recruitment says

    It is really a nice and helpful piece of information. I’m glad that you shared this useful info with us. Please keep us informed like this. Thank you for sharing.

  18. facebook david hoffmeister says

    I like this web blog so much, saved to bookmarks. “I don’t care what is written about me so long as it isn’t true.” by Dorothy Parker.

  19. hey says

    Taxi moto line
    128 Rue la Boétie
    75008 Paris
    +33 6 51 612 712  

    Taxi moto paris

    Link exchange is nothing else except it is simply placing the other person’s
    weblog link on your page at appropriate place and other person will also do similar in support of you.

  20. ISO 9001 documents says

    Thanks for the auspicious writeup. It in truth was once a amusement account it. Glance advanced to more added agreeable from you! However, how can we be in contact?

Leave A Reply