Harare — THE Confederation of Zimbabwe Industries has called for more time to facilitate the switch over to the electronic fiscalised tax register system as most companies might fail to meet the current deadline.

Finance Minister Tendai Biti's announced in his Mid-term fiscal policy review this week that all companies would be required to use electronic fiscalised tax registers after October this year. Firms are currently using manual systems.

Mr Rameck Masaire, a member of the CZI standing committee on economics and banking, said the industrial body would lobby for an extension of the deadline.

"The time given for the implementation of the fiscalised tax register system is insufficient. We feel most firms will not meet the deadline," he said.

The industrial body also expressed reservations over certain issues related to the computerised tax register system such as where liability should be placed when data is corrupted or lost by unannounced power supply cuts.

CZI also expressed concern on the fact that in the event of theft or break-ins the affected firm would not be allowed to continue with business unless the Zimbabwe Revenue Authority has granted the permission.

Industry fear the electronic tax register system, whose cost of implementation shall be shared equally with Government, may disturb operations in the event of a disruptive incident to the new tax recording devices.

Companies would be compelled to stop business and report to Zimra any such disturbance to the electronic tax register system and business within four hours and only revert to manual system if Zimra fails to pitch up after eight hours.

CZI however, welcomed most other new tax administration arrangements announced by Minister Biti. The industrial body hailed the minister for moving Value Added Tax submission dates from the 3rd to the 15th of the next month.

The industrial body said this would give companies ample time to pay salaries and finance operations before mobilising resources to pay VAT.

Mr Masaire commented Minister Biti for introducing a tax amnesty relating to the unsettled tax obligations during the hyperinflationary period.

In addition, he also praised the raising of fine for companies caught transporting smuggled goods.

The penalty was raised from level seven to 14. A company caught transporting smuggled goods would be fined US$5 000.

Government said it would also introduce cargo-tracking devices to prevent goods not destined for Zimbabwe from ending up in local markets.

"Goods that are not meant for this market should never find their way on to this local market," said Mr Masaire.

Mr Masaire however, called on the Government to ensure the country's customs regulations are in line with developments at regional and international level.

By The Herald