Be tax compliant, MSMEs told

Judith Phiri, Business Reporter

THE Zimbabwe Revenue Authority (Zimra) has called on micro, small and medium enterprises (MSMEs) to be tax-compliant and regularise their operations, to avoid being caught on the wrong side of the law.

Recently speaking in an online discussion with businesses, Zimra Head Audits and MSMEs, Mr Mkhululi Nkulumo said taxes have always been a critical source of Government revenue.

“Governments rely on tax to take of our social services, Government business and salaries, civil servants, capital expenditures or projects and a lot of things. Taxes are what keep the Government oiled so it is something which we need to embrace and ensure we also play our role,” he said.

He said tax compliance, being taxpayers’ decision to comply with tax laws and regulations by paying tax timely and accurately was critical and ensured that businesses are not found wanting.

Mr Nkulumo called on MSMEs to submit tax returns within the postulated period, correctly declaring income received and deductions and paying taxes by due date to Zimra.

He added: “The tax types that we have are domestic taxation, as well as customs and excise which is more of the other taxation. Domestic taxation include the value-added tax (VAT), income tax, pay as you earn (PAYE), capital gains tax and withholding tax. Every business is supposed to contribute one way or the other to any of these taxes.”

To also incorporate the smaller players, Mr Nkulumo said the Government brought in the presumptive tax (informal trader’s tax) which is a tax levied on informal traders, small–scale miners, cottage industry operators, transport operators.

He encouraged businesses to make it their obligation to pay taxes and not wait to be pushed or be found to be noncompliant.

Meanwhile, the Government gazetted Finance (No. 2) Act 13 of 2023 which promulgates revenue measures announced by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube in the 2024 National Budget, later approved by Parliament and Senate.

The gazetted tax policies have come into effect in line with the National Budget provisions, while businesses have issued notices to customers concerning the 15 percent VAT on products in line with the gazetting of Statutory Instrument (SI) 248 of 2023.

Zimra has also begun implementing measures to protect value chain integrity and transparency to counter unfair competition by informal traders, a development that would result in only licensed and tax-compliant operators procuring goods from manufacturers and wholesalers.