Online Reporter
Latwell Nyangu
GOVERNMENT has approved measures to address challenges in the formal business environment and ordered that all vendors be issued with Point of Sale (POS) machines and that they should open bank accounts upon registration/licensing.
Speaking during the post-Cabinet briefing, Information, Publicity and Broadcasting Services Minister, Dr Jenfan Muswere, said Government has introduced a cocktail of short-and-long-term interventions aimed at addressing the challenges in the economy and providing support to Micro, Small and Medium Enterprises.
“In broad terms, the Government seeks to bring all businesses into the tax bracket and enhance the effectiveness of the foreign exchange market.
“In the long-term, Government will address the business environment in order to streamline fees, charges and minimise duplication of work by Government Agencies as well as improve electricity supply.
“Such an environment will enable MSMEs to graduate into formal businesses.
“Under short-term measures, the use of electronic money will now be compulsory for all businesses and shall be achieved through the introduction of a compulsory tax payment system to ensure that every eligible taxpayer pays tax.
“There is also establishment of a Domestic Inter-agency Team to ensure informal sector compliance with tax laws and introduction of a framework which ensures that all vendor licensing by local authorities is done in consultation with Central Government,” said Min Muswere.
He added:
“It will henceforth be mandatory that all vendors are promptly issued with Point of Sale (POS) machines and that they open bank accounts upon registration/licensing.
“Cabinet further endorsed refinement of the Foreign Exchange Management system, the reduction of the foreign currency retention level for exporters from 75 percent to 70 percent, a reduction in bank charges and minimum Deposit Interest Rates.
“Cabinet has further adopted the following medium-term measures:
i. To ease the Cost of Doing Business by streamlining processes, fees and charges, as well as duplication of work by Government Agencies to reduce the turnaround and cost to business;
ii. To ensure strict compliance with the Indigenisation and Empowerment Act which provides for certain areas as reserved sectors;
iii. To enforce the procurement of goods and services from local producers and suppliers in order to support local industry;
iv. To expedite the construction of power plants and upgrading of the distribution network to enhance the availability of electricity.
v. To incentivise the use of alternative sources of energy and expedite social protection coverage to the informal sector.”
