ZiG tax collection to boost its demand
Zimbabwe’s tax authorities have taken a step towards broadening the funding base for development projects by implementing revenue collections in the Zimbabwe Gold (ZiG) currency.
The ZiG currency has been fully integrated among a basket of currencies within the country’s tax payment systems.
This move comes as the Zimbabwe Gold currency continues to strengthen on the Reserve Bank of Zimbabwe interbank market, recording an over two percent gain against the United States dollar after its inception two and a half weeks ago.
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Tax experts predict that the inclusion of ZiG in tax systems will promote the use of the local currency. Companies are also expected to pay 50 percent of their Quarterly Payment Dates (QPD) in local currency by June, which will further boost the use of Zimbabwe Gold currency.
One of the advantages of collecting tax using ZiG is that it will spur revenue generation for development projects. The broadening of the funding base will provide more resources for the government to invest in key infrastructure projects such as road construction, health facilities, and education.
Moreover, the use of Zimbabwe Gold currency in tax systems will help stabilize the local currency. With more companies using ZiG to pay their taxes, the demand for the currency will increase, which will lead to its appreciation and stability. This stability will, in turn, boost investor confidence and attract more foreign investment into the country.
Some are clamouring for government to promote ZiG acceptability by allowing some or all of its services to be paid in local currency. They want fuel, passport fee application and other services to be charged in ZiG.
