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Sithandazile Moyo Business Reporter
THE Government should introduce policies that will see the Zimbabwe Revenue Authority (Zimra) harnessing tax from the informal sector to improve revenue inflows in the country, an official said yesterday.Speaking at a symposium organised by the Bulawayo Business Arise at a local hotel, Ernst & Young business tax advisor Peter Mgodi said introducing tax to entrepreneurs in the informal sector was critical because the economy was more inclined to the sector.
“There should be policies which are clear on how the informal sector should be taxed because business in Zimbabwe has changed.
“It is no longer defined by tall buildings and offices because many have joined the informal sector,” he said.
He said due to existing policies, the Government would not tax the informal.
He said Zimra should start focusing on taxing the informal sector as much as the authority was doing on formal businesses and this would go a long way in improving the country’s revenue base.
“Zimra has to focus on the informal sector because they bring into the country cheap imports and at the same time do not pay tax which makes locally produced products to be less competitive especially in pricing.”
“If a new Income Tax Act is crafted it will help the Government to have access to the revenue flowing in the informal sector which will be used to promote and grow local businesses,” Mgodi said.
Speaking at the same occasion Drummond Zimbabwe Group managing director Ken Drummond challenged the local business community not to sit and wait for foreign investors to find solutions to challenges facing business locally.
“As businesses you do not have to wait for foreign investment but you should take your business to the people, know your market and take charge.
“Then when foreign investors come it will be only to compliment and support what you are already doing,” he said.
Online Reporter