17 April 2014

Zimbabwe: Zimra Raids NSSA

The National Social Security Authority (NSSA) was last week raided by the Zimbabwe Revenue Authority as the tax-collector continued with its pursuit of tax-defaulting companies.

According to a NewsDay report NSSA General Manager James Matiza would not be drawn into shedding any light on the matter but an insider confirmed the development. The unnamed insider said 'NSSA was served with a garnishee order for $10 million for outstanding taxes.'

Two weeks ago Zimra raided Mbada Diamonds over $22.4 million worth of taxes. The national tax-collector recently indicated that it will soon raid the informal sector.

The NewsDay newspaper said the raids on defaulting companies confirm the country's dwindling revenues, as said by Zimra commissioner-general Gershem Pasi in Parliament recently. Former finance minister Tendai Biti this week said lack of revenue has forced the country to over borrow to service the domestic debt.

Biti said since August last year, government has borrowed over $600 million for salaries and the lenders were no longer willing to continue. Biti said the situation has been worsened by the fact that investors have taken their money out of the system in fear of losing their investments. He said billions of dollars have left the banks and the stock exchange.

It appears that Zimra is desperately trying to rake in some money because of this.

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