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Zimra sabotaging ZiG, says MP

A LEGISLATOR has accused the Zimbabwe Revenue Authority (Zimra) of undermining the Zimbabwe Gold currency (ZiG) after the tax agency pegged prices for goods it is auctioning exclusively in United States dollars.

Recently, Zimra advertised that it would auction off equipment from its offices in Bulawayo and Victoria Falls but said that would only accept payment in the greenback.

This riled Discent Bajila, the Citizens Coalition for Change (CCC) MP for Emakhandeni-Luveve, who accused the tax agency of undermining confidence in the country’s new currency.

Raising a point of national interest in the National Assembly this week, Bajila slammed Zimra for acceptingUnited States dollar payments only and petitioned Finance minister Mthuli Ncube to call the tax agency to order.

“My attention was brought to the notice that all payments for this auction are strictly in United States dollars while most words in the notice fall on normal font, the word strictly has been put in bold to emphasise the point.

“This is tantamount to a vote of no confidence in the local currency by our tax collector, to prevent the use of local currency even for the purchase of second-hand goods, is the highest level of contempt by the tax collector.

“I thus call upon the Minister of Finance, Economic Development and Investment Promotion to bring Zimra to order and to allow the use of both foreign and local currencies in these transactions if we have confidence in the local currency,” he said.

National Assembly Speaker Jacob Mudenda acknowledged Bajila’s point.

“You have made an interesting observation.  Perhaps you can follow it up so that you can get more elaboration from the Minister of Finance,” he said.

The Reserve Bank of Zimbabwe introduced the Zimbabwe Gold (ZiG) currency in April after the Zimdollar was decimated by inflation but the new unit has suffered a crisis of confidence.

The country’s international currency code has since switched from ZiG to Zimbabwe Gold (ZWG), according to the Reserve Bank of Zimbabwe (RBZ).

In a letter to Bankers Association of Zimbabwe chief executive officer Fanwell Mutogo, central bank financial markets deputy director Josephat Mutepfa said the World Bank ISO 4217 Committee had approved the country’s currency code change from ZWL to ZWG (Zimbabwe Gold) effective June 25, 2024.

“It should also be noted that the minor units of the Zimbabwe Gold shall be denominated as ‘cents’. The codes ZWL and ZWG will run concurrently from June 25 to August 31, 2024 to allow necessary system configurations by players,” the RBZ letter reads in part.

“In this regard, the ZWL currency code will cease to be recognised from September 1, 2024.”

Government departments have been under fire for demanding payment for their services in United States dollars instead of the new currency.

Economic analysts have called the government to take the lead in accepting the new currency so that the transacting public gains confidence in the new currency.

Source | NewsDay


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