The government has signed into law the tax amnesty proposals aimed at waiving penalty and interest on tax arrears due and payable by December 1 2017.
According to the Finance Act 1 of 2018 section 31 gazetted on 15 March tax defaulters have up to June 30 this year to clear outstanding debts owed to the Zimbabwe Revenue Authority (Zimra).
A tax expert Mr Simon Gwenzi said the move by government will enable industry and commerce to pay up outstanding debts.
“The move is progressive so let’s wait and see what will happen in the future,” he said.
In light of viability constraints, access to liquidity and low production capacity, it will be interesting to see the response by industry and commerce on the tax amnesty adds Tax Matrix managing director Mr Marvellous Tapera.
“We are really waiting to see what will happen as industry and commerce grapple to beat the deadline,”said Mr Tapera.
Government through Zimra is owed in excess of $4 billion and Finance Minister Cde Patrick Chinamasa in the 2018 national budget said tough economic conditions had resulted in several firms failing to meet tax obligations leading to the tax amnesty proposals.