Zimra mulls special tax regime for SMEs

THE Zimbabwe Revenue Authority (Zimra) says is it working on harmonising its tax regime to ensure that registered small to medium enterprises and the informal sector contribute more to taxation.

The country has a large informal sector that employs thousands of people but contributes less revenue to the fiscus.

Speaking during a forum on the effects of Government taxation on women in Zimbabwe in Bulawayo last Friday, a Zimra official, Mr Privilege Zvavamwe, said the proposed tax regime would be fair enough to encourage players in the informal sector to pay tax.

“We are looking at coming up with a specific tax targeting players in the small-to-medium enterprise, informal traders and cross border traders,” he said.

“The proposed tax regime will be fair enough within the presumptive tax range but also not close to 25 percent corporate tax charged on big companies.”

At the moment the informal sector meets statutory obligations by paying the Presumptive Tax and Value Added Tax.

Mr Zvavamwe urged the informal sector to desist from tax evasion as this was robbing the country of critical resources for national development.

“We are encouraging people to pay tax and we are doing this through tax payer education. This year we are planning to do more, we are also running campaigns to create awareness about the operations of Zimra,” he said

“By collecting tax, Zimra is fulfilling its mandate of mobilising Government revenue to promote social and economic development in the country.”

Mr Zvavamwe said it was imperative for players in the informal sector to speak collectively through their respective associations such as the Bulawayo Vendors and Traders Association (BVTA) on any tax matters so that their concerns will be responded to with urgency.

“The voice of the association is taken seriously than an individual voice. If you can speak with one voice for example, as BVTA appealing for tax reduction, your concerns will be taken into consideration.

“Such an arrangement is bound to be heard by Zimra or Government than making appeals individually,” he said. –chroncie.czw

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