1/ Any business concern that is into exporting activities generates its sales or revenue out of entrepreneurial ingenuity, funding, production & distribution.
It pays taxes like any other local business concern.
@MthuliNcube @GGuvamatanga @happ_zenge @elias_mambo
It pays taxes like any other local business concern.
@MthuliNcube @GGuvamatanga @happ_zenge @elias_mambo
2/ Apart from the same taxes that a non-exporting business pays, an exporting business is required currently to surrender a portion of its earnings to the RBZ payable at a fixed rate.
The balance after the #SurrenderRequirement is to be liquidated in 30 days.
The balance after the #SurrenderRequirement is to be liquidated in 30 days.
3/ By definition, surrender is “to give up or hand over (a person, right, or possession), typically on compulsion or demand.”
4/ Export earnings are a form of #PrivateProperty.
Under s71(2) of the Const. of ZW, private property is protected & then s71(3) is the #ExpropriationLimitationClause that guards against arbitrary & indiscriminate expropriation of property.
Under s71(2) of the Const. of ZW, private property is protected & then s71(3) is the #ExpropriationLimitationClause that guards against arbitrary & indiscriminate expropriation of property.
5/ In detail, s71(2) is the #PropertyRightsClause or #Right2PropertyClause, where every person has the right, in any part of ZW, to acquire, hold, occupy, use, transfer, hypothecate, lease or dispose of all forms of property, either individually or in association with others.
6/
s71(3), #Conditions4CompulsoryAcquisition:
a. deprivation has 2 b in terms of a law of general application;
b deprivation has 2 b necessary 4 any of th reasons given;
c. acquiring authority has 2 follow th procedure;
d. deprived party can challenge in a court of law.
s71(3), #Conditions4CompulsoryAcquisition:
a. deprivation has 2 b in terms of a law of general application;
b deprivation has 2 b necessary 4 any of th reasons given;
c. acquiring authority has 2 follow th procedure;
d. deprived party can challenge in a court of law.
7/ As one can notice, both the RBZ's #SurrenderRequirements & #CompulsoryLiquidation of export earnings is not by consent because its compulsory.
Why?
Why?
8/ These two policy regulations are a blatant violation & disregard of the constitution in respect of:
i. #DueProcess [s69(1)-(3)],
ii. #PropertyRights [s71(2)], &
iii. #DueExpropriation [s71(3)].
i. #DueProcess [s69(1)-(3)],
ii. #PropertyRights [s71(2)], &
iii. #DueExpropriation [s71(3)].
9/
Further,
i. Gvt doesn’t own th forex its compulsorily getting from exporters. That’s pvt property &subject 2 #PropertyRights.
ii. Allocating forex 2 anyone is itself commandist. It’s against market economy principles. Anyone needing FX shld source own FX to make any payment.
Further,
i. Gvt doesn’t own th forex its compulsorily getting from exporters. That’s pvt property &subject 2 #PropertyRights.
ii. Allocating forex 2 anyone is itself commandist. It’s against market economy principles. Anyone needing FX shld source own FX to make any payment.
10/ There are acquittal requirements already. The RBZ should enforce that.
Exporters must export through financial intermediation of local banks & their corresponding foreign banks.
Expropriation of some export earnings makes exporters do things to avoid surrender.
Exporters must export through financial intermediation of local banks & their corresponding foreign banks.
Expropriation of some export earnings makes exporters do things to avoid surrender.
11/ Exporters have FX needs to import requirements for their production. That FX won’t be available from banks for them.
Thus exporters aren’t bringing the export earnings back but asking their foreign clients 2 pay their foreign suppliers directly.
Resultantly, no FX for ZW.
Thus exporters aren’t bringing the export earnings back but asking their foreign clients 2 pay their foreign suppliers directly.
Resultantly, no FX for ZW.
12/ The exporting companies also end up setting up related companies in foreign countries 2 be the foreign suppliers & custodian of the unremitted funds.
The so called transfer pricing arises out of this arrangement. Nobody has been convicted except being politically condemned.
The so called transfer pricing arises out of this arrangement. Nobody has been convicted except being politically condemned.
13/ It’s very expensive to be an exporter arising out of these expropriatory regulations in the name of surrender requirements.
The Gvt is criminalising business activity since it’s creating additional costs, opportunities for arbitrage & evasion for compliance.
The Gvt is criminalising business activity since it’s creating additional costs, opportunities for arbitrage & evasion for compliance.
14/ Remove the so called #SurrenderRequirements & incentivise acquittal of export earnings. Reward compliance!
It shouldn’t be a crime for exporters 2 create subsidiary or related companies in foreign countries or 2 have exporters’ customers pay exporters’ suppliers directly.
It shouldn’t be a crime for exporters 2 create subsidiary or related companies in foreign countries or 2 have exporters’ customers pay exporters’ suppliers directly.
15/ @mmawere, Chris Kuruneri & James Makamba were criminalised through the statist assumption that private export earnings belong to the state & yet the state wasn’t involved in equity & funding, production & distribution of the export products.
16/ Export earnings don’t create themselves. They need the agency of an entrepreneur who will then raise funding, get involved into production of the export products and the distribution of such products to the foreign customer.
The Gvt should stimulate more of these activities.
The Gvt should stimulate more of these activities.
