By Tendai Chisiri
Competitions and Tariffs Commission Zimbabwe (CTC) realised 159% increase in Trade development surcharge levy (TDSL) in it’s financial year ended 31 December 2021.
The Commission weaned off from the Government grants in 2016 held its 2nd Annual General Meeting (AGM) in the Capital on Thursday and officially handed the Annual Report to stakeholders.Commission Chairman Dr Benedict Moyo presented the Annual Report at the AGM .Deputy Minister of Industry and Commerce Rajeshkumar graced the occasion and commended the Commission for being self-sustaining.
The Commission generates its revenue from TDSL, merger notifications fees and other income such as advisory opinion in COMESA or interests.In the financial statement year ended 31 December 2020, TDSL is ZW$ 75 000 089 up from from ZW$ 28 986 277 in 2019, merger fees also rose from 2019’s ZW$ 17 632 598 up to 2020’s ZW$ 19 019 570.Total income generated is ZW$ 148 050 336 compared to last year’s ZW$ 72 468 672.There is 104 % increase in income revenues (inflation adjusted) according to the financial statement.
However, in the Annual Report, the auditors highlighted that financial outcomes were not materially impacted.” The Commission did not apply requirements of IAS 21, Effects of Changes in Foreign Exchange Rates in the prior year financial statements because of the unavailability of exchange rates in the period 1 January to 22 February 2019″, states the Annual Report.Transactions in Zimbabwe during that period had a 3 tier pricing where a single product product had different prices depending on the mode of payment, namely United States Dollar Cash, Bond Notes, Electronic Money or Mobile Money .
If the Commission had applied the Effect of Changes in Foreign Exchange Rates, they should have converted all transactions at spot rate instead of 1:1 between United States Dollars Cash,RTGS balances and Bond Note.
“Had the entity applied the requirement IAS 21, all expenses items in the statement of profit or loss and other comprehensive income and all current assets, current liabilities and non-current liabilities stated on the financial position along with the consequential impacts to retained earnings of the prior year financial statements, which is presented as comparative information , would have been materially impacted”, added the auditors.
International Auditing Standards (IAS) requires the use of spot rate in accounting for transactions.
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