Online ReporterMutsawashe Mashandure
Herald Correspondent
The Consumer Council of Zimbabwe (CCZ) wants policymakers and law enforcement agents to safeguard the survival of the formal sector as it contributes to the national fiscus through payment of statutory obligations such as taxes.
In a statement yesterday, the CCZ raised concerns over the continued closure of formal retailers and wholesalers, with others facing an uncertain future.
“This is due to mounting pressure on sales volumes, exchange rate instability, and overall viability, largely driven by competition from informal traders, including street vendors and tuckshops,” read the statement.
The CCZ warned against the rise of informal traders who operate without paying taxes, which has led to the decline of the formal sector.
“Formal retailers and wholesalers contribute significantly to the national fiscus through the payment of statutory obligations such as taxes, salaries and utilities,” CCZ said.
“On the other hand, informal traders often avoid customs and excise duties through the smuggling of goods, which creates unfair competition for formal businesses. These formal businesses also struggle with high overhead costs, ultimately affecting their pricing structures,” the CCZ said.
The consumer watchdog said the closure of formal businesses has ripple effects on the economy, including reduced tax revenues, increased unemployment, and disruptions to the entire food value chain.
This compromises consumers’ rights to choose, to fair value, to information, and to disclose.
The CCZ stressed the importance of adherence to the Consumer Protection Act by all traders.
“Above all, every trader must be governed by the Consumer Protection Act so that consumers are treated fairly, with their rights upheld by all.”
The CCZ called on policymakers and enforcement agents to take an active role in safeguarding the survival of the formal sector, which it described as the backbone of the economy.
“We call upon policymakers and enforcement agents to actively play a leading role in safeguarding the survival of the formal sector, which is the mainstay of our economy,” the CCZ said.
The CCZ also encouraged consumers to support formal businesses.
“Meanwhile, we urge consumers to buy wisely from formal, registered retailers, as they are guaranteed good quality and safe products that will not affect their health and well-being.
“They are also guaranteed their right to redress, especially when faced with counterfeits and underweight products on the market,” read the statement.
