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THE government, which is excluded from paying duty, is the biggest importer accounting for over 60 percent of the over $7 billion imports last year, an official said on Tuesday.Zimbabwe has continued to have a skewed balance of trade position in over five years as imports continue to outrun exports, with the current account deficit amounting to more than $3 billion in 2013.

Finance Minister Patrick Chinamasa in the 2014 National Budget criticised Zimbabweans for importing trinkets in what he described as “irrational exuberance”.

But Zimbabwe Revenue Authority (Zimra) commissioner general told the Parliamentary Portfolio Committee on Foreign Affairs that the government was in fact the largest importer, bringing into the country goods worth over $4 billion last year.

Pasi was defending Zimra following accusations that it was sleeping on the job as the economy was not realising much from customs duties while import levels were high.

“Of the $7 billion, $4,1 billion is government imports which do not pay duty,” he said. “Government imports do not pay duty but they are declared.”

Pasi did not however, specify what the government imported but legislators expressed concern that some ministers might be importing personal goods disguising them as “government goods” to avoid paying duty.

Other import duties were also affected by bilateral agreements which reduced taxation levels on imports, said Pasi.

“Applying import duty on the whole (import) bill is unfair and perhaps it is also designed to give an impression that Zimra is not working,” he said.

Zimra revenue collections amounted to 29 percent of GDP last year with some analysts saying the organisation was among the most efficient tax collectors in the world.

“We are not doing too bad a job given the shrinking economy,” Pasi said.

He said the high levels of imports reflected the current poor performance of the local industry.

The government, Pasi said, should do more to restrict exports of cash by limiting the amount that individuals are allowed to carry outside the country per month.

The current limit is $10,000 per trip while the number of trips is unlimited.

Zimra was also pushing the government to put a cap on funds that local banks kept outside the country in Nostro accounts, he said.
Pasi said all Zimbabweans, except the President, were by law expected to pay duty for imports.

“Even if they are ministers, they have to declare their goods and pay duty and if they do not, its smuggling,” he said, while citing cases in which the tax collector took some unnamed senior government officials to task for failing to declare their goods.

Zimra collects and provides 98 percent of government revenue.

Meanwhile, Pasi said Zimra has exceeded its first quarter target by two percent. — New Ziana.