The Parliamentary Portfolio Committee on Public Accounts has urged the Government to implement lifestyle audits as a tool in fighting corruption, fraud and money laundering.
The chairman of the committee, Brian Dube, bemoaned the country’s tax system, saying it works against the poor. He said:
If a person is able to buy a Lamborghini for US$500 000 then ZIMRA should be able to follow how much tax they would have paid in that year. But, we have very weak systems to allow ZIMRA to do that.
… The tax system in the country is prejudicial to the poor people whom I believe are being overtaxed.
We do not have a systematic process relating to wealth tax to make sure that those who have more pay significantly more taxes.
This means that the poor are now taking less home which contributes to the suffering of the majority.
Tax Matrix CEO, Marvellous Tapera, told Business Times said a large number of people operating in the informal sector do not pay employment tax and corporate tax. He said this should be corrected.
Tapera also urged Finance and Economic Development minister, Mthuli Ncube, to raise the ZWL$25 000 tax-free threshold.