Chronicle Editor
Vuyisile Mlilo, Business Reporter
THE Chamber of Small and Medium Enterprises (SMEs) in Zimbabwe has revealed that they are facing a number of challenges in their efforts to ensure compliance with the country’s tax laws among SMEs.
In an interview with Sunday News, Mr Nketha Dlamini, the programme coordinator of the Bulawayo Chamber of SMEs, raised concerns over the lack of awareness and education regarding tax requirements for entrepreneurs.
Mr Dlamini said it is crucial for SMEs to understand the importance for them to adhere to the country’s tax laws. He said as a chamber they understood the significance of taxation in fostering economic growth and ensuring fair contributions from businesses.
“We have invited Zimra to visit all our sites where our SMEs operate from so that they teach our members and inform them on the importance of being tax compliant. We have also registered all members based at the SMEs Centre with Zimra for either corporate tax or presumptive tax. Training of SMEs is key, visits by Zimra to SMEs in the form of outreach programmes is also key to promoting tax compliances, we also invite Zimra to all of our trainings where we have SMEs so as to foster a spirit of collaboration,” said Mr Dlamini.
He further suggested that efforts should be made to increase awareness campaigns and provide easily accessible information to SMEs, noting that a lack of awareness often results in unintentional non-compliance and unnecessary clashes with authorities.
Mr Dlamini acknowledged that compliance can be complex and burdensome for small businesses, particularly those with limited resources but said it is essential for Zimra to develop comprehensive educational programmes that are tailored to the unique needs of SMEs.
These initiatives should not only outline the tax obligations but also provide practical guidance on record-keeping, tax planning, and reporting. “A lot of SMEs are afraid of dealing with Zimra there is a phobia that pervades a majority of SMEs. There is also lack of knowledge about how Zimra operates and the general process of registration. A number of SMEs try register via agents — but these are expensive.
“Majority of SMEs will need to utilise services of accountants or book-keepers to compile financial information of which it can be expensive. It is not possible for SMEs to employ accountants and book-keepers permanently because of costs,” he said.
In addition to educational programmes and reducing cost of tax compliance Mr Dlamini stressed the importance of simplifying tax processes and procedures for SMEs.
He said streamlining administrative tasks and reducing red tape can alleviate the burden on small businesses, allowing them to focus on their core operations while remaining compliant.
Online Reporter