The Zimbabwe Revenue Authority (ZIMRA) has intensified its efforts to combat the widespread smuggling of goods into the country.
In an interview with NewsDay, ZIMRA head of corporate communications Francis Chimanda said that despite the ongoing enforcement measures, the tax authority is seeing the continued prevalence of smuggling activities. Said Chimanda:
Yes, people still resort to smuggling as noted from encounters in enforcement activities conducted by ZIMRA and other law enforcement agents.
The motives for smuggling vary from person to person, but in general, people smuggle goods to evade controls and payment of duty at entry points as well as to avoid paying inland taxes when they sell smuggled commercial goods.
ZIMRA says smuggling remains a rampant issue, despite the existence of a traveller’s rebate of duty.
As explained by Chimanda, the “traveller’s rebate of duty” is a duty-free allowance that enables travellers to import non-commercial goods up to a value of $200 once a month, without being charged any duty. Added Chimanda:
Non-commercial goods imported by private importers are charged duty at flat rates of assessments on their value or quantities, in the case of alcoholic beverages, cigarettes and clothing, including footwear.
The rates range from 5% for books to 110% for some alcoholic beverages. Some rates are a flat monetary amount per quantity of goods, while others are a combination, that is a percentage of the value plus a flat monetary amount.
ZIMRA loses a significant amount of revenue due to smuggling activities. Estimates suggest that Zimbabwe loses up to US$1 billion annually from smuggling along its borders.
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