WATCH: Zimra to roll out voluntary disclosure facility for SMEs

Nqobile Bhebhe Zimpapers Business Hub

The Zimbabwe Revenue Authority (Zimra) will this Friday release a voluntary disclosure public notice designed to ease tax compliance for small and medium enterprises (SMEs), Acting Commissioner-General Mr Misheck Govha has said.

Speaking at a Zimra stakeholders’ breakfast meeting on the sidelines of the ongoing Zimbabwe International Trade Fair (ZITF), Mr Govha said the new measure forms part of a broader simplified tax regime targeting SMEs and the informal sector.

He said the initiative is aimed at widening the tax base while creating a more accommodating compliance framework for businesses that have struggled to meet their tax obligations.

“We have a simplified regime for tax for the SMEs, we have engaged with the Ministry of Local Government, we have engaged with the local authorities throughout the country,” said Mr Govha.

“We have the committees that are working on that and we are also involved in the Ministry of Finance to make sure that that is catered for.”

Mr Govha said Zimra is also consulting the Ministry of Women Affairs, Community, Small and Medium Enterprises Development to ensure inclusivity and alignment with the needs of small businesses.

“The Ministry of SMEs, we are then engaging you after we have a draft so that at least your input is captured,” he said.

The forthcoming voluntary disclosure facility is expected to give taxpayers across the country an opportunity to regularise their tax affairs without attracting penalties, although interest will still apply.

“But let me say, I take note of what we have said, issues of penalties. Unfortunately, interest is not waived, but we are working on a voluntary disclosure public notice,” said Mr Govha.

“It will come out by Friday. It will give everyone across the nation the opportunity to declare without any penalty.

“So that is coming. Let’s take note, it will be also on the Zimra website.”

The move is seen as part of Zimra’s ongoing efforts to foster a culture of voluntary compliance and strengthen domestic resource mobilisation in line with national development priorities.

Stakeholders at the meeting welcomed the development, noting that a simplified and more flexible compliance regime could help bring more SMEs into the formal tax system while easing the burden on existing taxpayers.

Zimra has in recent years intensified engagement with business and industry as it seeks to enhance compliance, improve service delivery and build trust with taxpayers.