Zimra engages SMEs to pay tax

Charity Ruzvidzo Business Reporter
THE Zimbabwe Revenue Authority (Zimra) yesterday engaged informal traders at a meeting in Bulawayo urging them to honour their statutory obligations by paying presumptive tax.
A Zimra representative Amen Muchemwa told members of the Zimbabwe Chamber of Informal Economy Associations (ZCIEA) that failure to pay tax was illegal.

“Informal traders must pay presumptive tax to Zimra through the local authorities like the Bulawayo City Council where they pay their rentals.

“The local authority should then remit 10 percent of the money paid to Zimra,” he said.

Muchemwa said informal traders who fail to pay their tax risk being charged more in penalties.

“Failure to register as an informal trader through local authorities and not paying tax will result in harsh penalties,” he said.

The participants alleged that police officers were also forcing them to pay certain amounts at roadblocks while others said at times their wares were confiscated despite paying duty at the border.

“We face challenges with the police who also make us pay certain amounts in addition to the tax or even take away our goods,” said Nomzamo Dube.

Some said they could not afford the 10 percent tax.

“Some informal traders make little profits because they are vendors who sell small items on the streets. What measures have been taken by Zimra to see if the traders are able to pay the 10 percent tax?” said another participant.

Muchemwa said the police had no right to make people pay duty but were mandated to inform Zimra if they caught people who did not pay.

He said he would raise the issue with his superiors to consider the levels of earnings for informal traders’ tax charges.

ZCIEA is the largest informal traders association in Bulawayo with a registered membership of about 700 of which 150 operate at council stands across the city.

The Ministry of Small to Medium Enterprises and Co-operative Development has said it is working on compiling a database of the estimated 5,8 million players in the informal economy with a view to formalising their operations to ensure they contribute to the mainstream economy.