Informal traders unhappy about new tax collection measures
Written by Skyz Metro FM on January 11, 2024
By Andile Mvundla
The recently enacted Finance act and Value added Tax (VAT) registration and tax clearance issues on goods by the government and ZIMRA has been red flagged by informal traders in the city stating that it will bring harm to the smooth flow of their businesses while affecting their growth in the process.
This came at a consultation meeting that was held a local venue recently by Bulawayo Informal sector working group alongside the Ministry of Small and Medium Enterprises which seeked to gain feedback on the impact of the Ministry of finance and ZIMRA Tax collection measures on the business community which includes wholesalers, retailers and informal traders.
Speaking during the meeting Solani Ncube who is an informal trader from New Lobengula, said that they are already having difficult time in obtaining tax clearances.
“We are having a difficult time clearing tax as vendors and our businesse’s usually generate low to average profits per week in the grocery business”, said Ncube.
Trust Mkhwananzi from Pumula South expressed his resentments towards the new tax collection measures.
“The uneccesary absurd payments of taxes by small scale operators will only slow our growth into large scale traders as they will keep on supporting the government while leaving our businesses in a dire state ,” he said.
The new tax collection measures were announced by the Minister of finance, Economic development and Investment promotion Professor Mthuli Ncube whereby reailers are now able to buy straight from the manufacturers as long as they have obtained a tax clearance certificate and are VAT registered while they have also been allowed to sell to corporations such as hotels, schools and other organisations only if clients are VAT registered.
In order to protect the quality of goods and safety of consumers, perishable products that include bread and milk products will be distributed by Manufacturers straight to retailers.