Companies That Charge US Dollars Should Pay Tax In US Dollars- Ncube

Presenting the 2019 National Budget on Thursday afternoon in Parliament, Finance Minister Mthuli Ncube said companies that charge prices in United States dollars should also remit taxes in the currency of trade.

Ncube’s proposal is in agreement with the Zimbabwe Revenue Authority (Zimra)’s statement ordering businesses that are trading in multi-currencies to remit taxes in the same currency in which the goods have been sold. Said Ncube:

Mr. Speaker Sir, notwithstanding that companies are appointed as agents that collect revenue on behalf of Government, some companies are not remitting VAT in the currency of trade, taking advantage of the arbitrage opportunities on the informal market. In order to contain such practices, I propose to compel companies that collect VAT in United States dollars or any other currency to remit VAT using the same mode of payment. This measure will apply on all other taxes.

Also Read:

• Zimra Orders Businesses Charging Foreign Currency To Pay Tax In Foreign Currency