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The Zimbabwe Revenue Authority (Zimra) has to date registered 11 191 small-to-medium enterprises (SMEs) as it moves to expand its tax base within the sector.
The revenue collector had given SMEs up to the end of this month to register for value-added-tax (VAT) on a voluntarily basis, as well as to make a declaration of their income(s).
And according to Zimra board secretary and director for legal and corporate services Ms Florence Jambwa: “The registration exercise is progressing according to plan and as at June 6, 2017, a total of 11 191 small-to-medium enterprises (SMEs) had come forward to register with the Zimbabwe Revenue Authority under the moratorium, which expires on June 30, 2017.
SMEs have become an integral part of the economy, and their contribution to the country’s gross domestic product (GDP) has been growing over the years. But Zimra has largely been unable to tap into the fast growing sector, hence the implementation of the new registration drive.
Meanwhile Zimra has also set up a small client office to specifically handle taxation issues within the sector. “The Authority has also set up the Small Client Office (SCO) to help the SMEs in complying with fiscal laws and to attend to any tax challenges they may face,” said Ms Jambwa.
There has been debate however on the extent to which the local SMEs sector should be taxed.
In April last year during the annual business conference of the 57th edition of the Zimbabwe International Trade Fair, Small, Medium and Co-operative Development Minister Stembiso Nyoni said Zimra may frustrate efforts to formalise the informal sector if the taxman continues to demand high taxes on newly registered entities. — BH24.
Online Reporter