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Tougher smuggling laws loom

Finance Minister, Mthuli Ncube

Thabiso Mutirwara

THE ministry of Finance is considering tougher anti-smuggling laws after or­dering the Zimbabwe Revenue Author­ity (Zimra) to “seize any contraband goods, vehicles or assets used in any such illegal activities” without recourse to paying duties.

This comes as the government has recently embarked on a massive anti-smuggling campaign and an equally aggressive anti-counterfeit goods operation.

It also comes after an Asian cartel was recently caught with a 20 000-plus consignment of electronic goods, which they have been trying to regain or repossess via a strong political lobby.

“…the Constitution provides for seizure and forfeiture of any goods which are the subject matter of an offence, as well as forfeiture of a ship, aircraft and vehicle or other things used for the conveyanc­ing of goods which are liable for forfeiture,” reads a note sent to Zimra director general Regina China­masa and seen by this publication.

“Whilst Treasury appreciates the progress made so far on the anti-smuggling campaign, there is a need for… public awareness on the dangers… and the consequences thereof. In this regard, where the law prescribes forfeiture of any goods… the said goods should be forfeited to the State without reser­vation,” it said.

“Furthermore, where the smuggled goods cost more than the payable duty, Zimra is directed to automatically forfeit such goods with no option to pay duty.”

As such, authorities have not only vowed to con­tinue fighting contraband trade in the country, with 4 800 sets of goods having been seized since January, but they believe the new measures can “help serve as a deterrent to rampant smuggling”.

Further, they have been fretting over Zimbabwe’ supermarket status with the continued prolifera­tion of foreign products and with Industry minister Mangaliso Ndhlovu recently vowing to “continue protecting consumers against fake goods”.

“The government is resolutely committed to intensifying the fight against smuggling and business malpractices. This is done to protect our vital local industries, create a level playing field for fair compe­tition and ensure consumer protection,” he said.

“Close to 4 000 inspections… have been done across the country since the start of the year… Those that are smuggling have taken advantage of currency distortions and higher cost of doing business in Zim­babwe as compared to in the region,” Ndhlovu said.

“Our task force, including tax, law enforcement authorities, immigration, local authorities, consumer protection bodies, small to medium enterprises and monetary authorities, has the primary objective of ensuring compliance and that businesses operate in accordance with established standards, and regula­tions,” he said.

On his part, Justice minister Ziyambi Ziyambi has said the government was considering statutory instruments to deal with the scourge of counterfeit goods.

“We do not want to kill our own industry in the name of trying to open up and ensure that our prod­ucts are cheaper,” he said.

“We are alive to the fact that in Zimbabwe, the cost of production is high because of the sanctions that we have. As a result, if we do not protect our industries, it means we will kill them and we will become a marketplace,” Ziyambi said.

“In the past few months, the Finance minister (Mthuli Ncube) increased import duties (for certain products), in a bid to discourage companies from importing goods… and support the local industries,” he said. Meanwhile, the deputy minister of Finance, Kudakwashe Mnangagwa, has issued a stern warn­ing that tax evasion, smuggling, and corruption are robbing Zimbabwe of vital resources needed to drive national development and improve citizens’ welfare.

Speaking yesterday at the Zimbabwe Revenue Authority (Zimra) Taxpayer Appreciation Awards Ceremony in Harare, Mnangagwa declared that non-compliance was not a victimless act, but a direct assault on the nation’s progress and future generations.

“Every act of smuggling, evasion, or corruption — big or small — steals from our children, our communities and our future,” he said. “Undeclared contain­ers, smuggled goods, unissued receipts, or falsified returns deprive hospitals of medicine, schools of books, and commu­nities of clean water and infrastructure.”

He added that countries that rigorously combat tax evasion and illicit finan­cial flows tend to enjoy better service delivery, greater investor confidence, and stronger economic growth, asserting that Zimbabwe “must and will be among them”.

Mnangagwa commended compli­ant taxpayers for their integrity and patriotism, calling their contributions “the lifeblood of Zimbabwe’s progress,” sustaining the country’s institutions and infrastructure.

“Each act of compliance is a brick in the foundation of our shared prosperity, bringing us closer to Vision 2030 — a self-reliant, competitive and prosperous Zimbabwe,” he noted.

The deputy minister emphasised that taxation should not be viewed as a bur­den, but as “a declaration of faith in our nation and a patriotic duty”.

He confirmed that Zimbabwe’s fiscal transformation agenda, guided by his ministry, was geared towards building an efficient, transparent, and business-friendly tax system that supports sustain­able growth.

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