GOVERNMENT has condemned the practice by some businesses to charge people paying in local currency using rates that are above the foreign currency auction rate.
Most shops are not adhering to the official foreign currency rate and some are using a three-tier pricing system for those buying in forex, cash in Zimbabwe dollar and electronic transactions
In a survey in Bulawayo’s city centre, Chronicle observed that shops continue to demand more money for those paying in local currency as opposed to those paying in forex.
While the official rate stands at US$1:$83,40 some supermarkets are using US$1:$98.
Government introduced the forex auction system to ensure stability in the market.
Under the auction system, successful bidders pay what they bid, regardless of whether that is higher or lower than the average, with the highest bidder getting the first allocation.
Last week, the forex rate was US$1:$82.91.
In an interview, Finance and Economic Development permanent secretary Mr George Guvamatanga said shops should display both United States dollar and Zimbabwe dollar prices and those who fail to do so will be penalised.
“Government is warning them against not displaying both the US dollar and Zimbabwe dollar prices given that we now have a dual pricing system. They should display both prices at the official auction rate. So, an item costing US$1 should be $82 at the current auction rate not $100,” he said.
“We are unhappy that the CZI (Confederation of Zimbabwe Industries) asked for dual pricing and we agreed but now they are all pegging prices in US dollar via the ZWL at exorbitant margins. They are getting money from the auction at 82 but proving their goods at rates ranging from 100 to 120.”
The permanent secretary said an extensive audit is looming and there will be penalties for those breaking the law.
“Those breaking the law are in serious trouble as an extensive audit is currently underway. Those caught will face the full wrath of the law. I would encourage all those who have not been complying to regularise their tax positions voluntarily,” said Mr Guvamatanga.
CZI deputy president Mr Joseph Gunda said he was not aware that some players in the manufacturing sector were using parallel market rate prices despite receiving forex at the Central Bank.
“We might need to find out who are the people doing it and what are the reasons for them to do so, otherwise, it won’t be fair to give a response. We will investigate, send your questions in writing,” said Mr Gunda.
