Zimra warns of payment bottlenecks during currency switch

The Zimbabwe Revenue Authority (ZIMRA) has advised clients and stakeholders that they may experience temporary difficulties settling tax and duty payments following the recent Monetary Policy Statement (MPS) announcement on Frida last week.

The announcement, outlining new financial regulations, requires adjustments within ZIMRA’s systems and collaborating banks.

To ensure compliance, ZIMRA is currently working to align its operations with the MPS.

While normal ZIMRA payment channels, including banking systems and cash offices at ports of entry, remain operational, temporary delays might occur as banks adapt to the new MPS guidelines, ZIMRA warned.

It said declarants or clearing agents with existing credit balances in their pre-payment accounts can continue using those funds to settle duties until further notice.

For transactions conducted before April 5, 2024, tax and excise return submissions can still be made in both Zimbabwean dollars and US dollars .

ZIMRA will convert the Zimbabwe dollar values to the new Zimbabwean currency (ZiG) once the conversion system is ready.

The ZiG, backed by a basket of foreign currencies and metals such as gold, aims to address inflation and stabilise the Zimbabwean economy. This transition, however, requires adjustments across the entire financial services system, with banks and mobile payment platforms temporarily suspending Zimbabwe dollar transactions during the switch.

ZIMRA will provide ongoing updates on tax and duty payments, as well as return submissions, throughout this transition period.

“The authority shall share an update on payment of taxes and duties and submission of returns on an ongoing basis as the alignment processes by various players’ progresses,” said ZIMRA.-ebusinessweekly