Consumer Rights Group Condemns ZIMRA's Festive Season Crackdown On Businesses
The National Consumer Rights Association (NACORA) has criticised the Zimbabwe Revenue Authority (ZIMRA) for cracking down on businesses suspected of selling smuggled goods during the festive season.
NACORA argues that the government should focus on creating a supportive environment for businesses to become formal.
This crackdown has caused losses for many liquor stores, tuckshops, and secondhand clothing shops, which usually expect high profits during the festive season due to the heavy fines imposed.
NACORA’s coordinator, Effie Ncube, told NewsDay that the small business sector is essential in reducing poverty.
He argued that the government should therefore create a supportive environment for these businesses to thrive. Said Ncube:
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While taxes must be paid and operations conducted within the law, the State should alleviate the tax burden, making it easier for businesses to operate legally and take into account the views of businesses.
Currently, there are too many roadblocks for businesses wanting to regularise their operations. This includes challenging registration requirements and a lack of affordable supplies in Zimbabwe.
This situation prompts many small businesses to look to Zambia, Botswana, Mozambique and South Africa for affordable supplies.
Unfortunately, steep import duties are encouraging smuggling, which takes away a key source of income for the State.
A win-win arrangement is urgently required. The hammer is not the best solution.
Coustine Ngwenya, chairperson of the Bulawayo Chamber of Small to Medium Enterprises (SMEs), said that although businesses should formalise their operations, it was unfortunate that ZIMRA targeted them during their busiest days. Said Ngwenya:
What happened was very unfortunate, we always encourage all SMEs to formalise their operations and be compliant with all statutory requirements so that their operations are above board. This will minimise the inconveniences like what happened.
We appreciate that ZIMRA was doing its mandatory obligations, however, we feel they were a bit harsh as the exercise was carried out during the busy business days.
Dumisani Ncube, a member of the Bulawayo, Matabeleland North and Matabeleland South Micro, Small and Medium Enterprises Advisory Council, has called on all SMEs in Bulawayo to join the chamber.
He said that a unified voice is essential in ongoing engagements with ZIMRA. Said Ncube:
We have requested tax exemption for those registered with SMEs, we are currently engaging the government and we are hoping for a positive outcome.
We are also negotiating for a similar arrangement like the Confederation of Zimbabwe Industries (CZI) and other big organisations for us to have the same benefits to ensure survival of the SMEs, above all it is essential that you pay your dues in form of taxes.
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