“GOZ only listens to IMF and WB (well sometimes) so I will tag them and they can advise appropriately. @WorldBankAfrica @IMFAfrica.”
Prominent market watcher Baba Nyenyedzi has implored the Zimbabwe Revenue Authority (ZIMRA) revenue is dwindling fast caused by many factors such as;(a) USD cash Dollarisation (b) Financial system irrelevance (c) Informalisation of business and (d) Dwindling economy.
He adds that the other factors include; (e) ZWL manipulated rate (f) Low FDI and low savings (g) Global technological and other changes (h) Lack of broad base consultations (i) Corruption (j) Powerful crony lobbyist.
He hints on how to solve the crisis saying: “Instead of parent ministry and Zimra going for a retreat with stakeholders to understand and appreciate the changing landscape, ZIMRA and Treasury are stuck in 1986.
“The world has changed and with it business models. Worse in Zimbabwe where policy is changed every week.
“In real terms the economy hasn’t grown since 2013 ( based on Zimstats) but more taxes have arisen and the incentive to be formal and pay taxes has reduced.
“Bank lending is how businesses formalise and tax authorities benefit the most. When government stopped lending and induced inflation, banks have become irrelevant in Zimbabwe.
He said the President Emmerson Dambudzo Mnangagwa regime sometimes listens to World Bank and International Monetary Fund, so he would tag them.
“GOZ only listens to IMF and WB (well sometimes) so I will tag them and they can advise appropriately.
@WorldBankAfrica @IMFAfrica.”
Source iHarare
