DELTA CORPORATION, a Zimbabwean beer maker and Coca-Cola Co bottler, lost an appeal against paying US$55 million of taxes in local currency, with the nation’s top court ordering the company to pay in US dollars.
The Supreme Court upheld a High Court decision after rejecting Delta’s case that the Zimbabwe Revenue Authority had not properly computed the company’s tax liabilities. The tribunal ruled that the company has to pay levies in foreign currencies for sales made in greenbacks.
Most Zimbabwean companies sell goods in US dollars after the national currency was scrapped in 2009 following government mismanagement of the economy, including a failed land reform policy, that unleashed hyperinflation. – Bloomberg