Vendors lament $2 400 a month presumptive tax

Leonard Ncube, Victoria Falls Reporter
HUNDREDS of informal traders whose businesses were affected by the Covid-19 induced lockdown have appealed to Government to consider their plight after the Zimbabwe Revenue Authority (Zimra) ordered them to pay $2 400 presumptive tax monthly.

Vendors who operate at Chinotimba Flea Market, Old Market Shops, Old Vegetable Market, Maminza Mall, Comesa Market, Busy Island and Sinathankawu argue that they have been out of business for more than a year hence they cannot pay the proposed tax.

Many of them have been struggling to resume business despite relaxation of Covid-19 restrictions because of lack of business.

Representatives of the affected markets held a meeting at Chinotimba Flea Market on Sunday where they expressed concern to Hwange West legislator Mr Godfrey Dube and Victoria Falls Combined Residents Association (Vifacora) leadership.

They said they received tax returns forms from Zimra and Victoria Falls City Council officials recently for each vendor to complete committing to pay $2 400 every month as presumptive tax.

They appealed to Government to waive the tax saying there is no business owing to low tourism activity in the resort city.

The majority of vendors reportedly refused to sign the forms while those operating from privately owned markets were allegedly threatened with eviction if they did not sign, according to those who attended the meeting.

“We were given forms to sign committing that we will pay $2 400 tax. What they are trying to do is milk a dying cow because we have been paying to the council despite the fact that we are not realising business at all. What they should do is cushion us first so we recapitalise our business,” said one of the traders Mr Ian Sibanda.

Another informal trader Ms Gugulethu Sibanda said the presumptive tax should be claimed according to sales made by an individual business.

Mr Hloniphani Moyo, also a vendor said it will be difficult for informal traders to pay the tax because they have been out of business since the start of the lockdown last year. Chinotimba Flea Market chairperson Mr Trynos Taruvinga said authorities should be sensitive to the plight of vendors.

“None of the informal traders has been keeping records because we didn’t know Zimra would wake up one day wanting returns. We wish Government could educate people first before implementing policies so that there is clarity and we also appeal for waiver of some of these taxes to allow businesses to resuscitate,” said Mr Taruvinga.

Those with lease agreements from the council pay $731 market fees per stall every month to the local authority.

There are 304 traders at Chinotimba Flea Market and hundreds others at other markets, and a few of them have resumed business while others either failed to restock or have relocated to rural areas.

Those operating from designated markets premises said their woes are compounded by presence of hawkers who move door-to-door selling or those who sell from the boot of vehicles and urged council to deal with the issue. Vifacora chairperson Mr Kelvin Moyo urged Government to be sensitive to their plight as tourism which is the city’s major economic activity has been closed for more than a year leaving residents with no disposable income.

The MP Mr Dube however said Government had not started implementing the presumptive tax as the issue was still under discussion.

He promised to take up the issue with the authorities.

“It’s true there is such tax for informal traders but it is yet to be implemented as far as I know as it is still being considered. I’m not aware if Government has ordered that Victoria Falls should pay $2 400 tax and will take it up. In fact, Zimra should claim from council because the informal traders have been paying rentals and market fees to council and to me it’s not proper for council to seek money from vendors on behalf of Zimra,” said Mr Dube during the meeting.

Zimra spokesperson Mr Francis Chimanda and Victoria Falls Town Clerk Mr Ronnie Dube could not be reached on their mobile phones. – @ncubeleon

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