Textile firm drags Zimra to court

Source: Textile firm drags Zimra to court | The Herald February 3, 2017

Fidelis Munyoro Chief Court Reporter
A textile company has taken the Zimbabwe Revenue Authority to the High Court contesting the tax collector’s demand for over $2 million.

Zimra seized Qingshan Investments (Pvt) Ltd’s goods worth $600 000, demanding the textiles company to meet its statutory obligations.

Qingshan Investments has been manufacturing blankets, duvets, batting, sheets and pillows since 2011. It imports the raw material from textile industries in China and South Africa.

The firm approached the court after the parties failed to resolve the dispute.

In an urgent application filed at the High Court yesterday, Qingshan is seeking an order compelling Zimra to release the goods it seized, pending the determination of the case.

The firm claims that the goods on which Zimra is demanding tax had been in the country for more than two years, which rendered them not liable for seizure.

It also denies owing Zimra the amount claimed or any amount.

According to Qingshan managing director, Mr Davison Farao, the firm paid the duty for the raw material in terms of Statutory Instrument 6301 0f 200.

This, he said, was the reason why the materials were cleared at both Beitbridge and Forbes border posts.

“All goods were properly cleared and duty was paid,” said Mr Farao.

“Consequently, these goods are not subject to seizure.”

Mr Farao argued that the firm, which employs more than 40 people, would suffer irreparable prejudice as it is being forced to pay twice for goods already cleared properly.

“The applicant did not smuggle the goods and they are not subject to seizure in terms of the Customs and Excise Act,” he said.

The firm has hired Harare lawyer Mr Jonathan Samukange of Venturas and Samukange to argue the matter.

Zimra is yet to respond to the application.