Small to medium enterprises (SMEs) and informal traders in Zimbabwe are raising concerns over the recent tax and passport fee hikes implemented by the government from January 1 this year. The Zimbabwe Revenue Authority (Zimra) encouraged informal traders to register for tax compliance, but this move has been met with reservations.
During a recent meeting hosted by the Bulawayo Informal Sector Working Group, SMEs and informal traders voiced their frustrations. Dumisani Ncube, a member of the Bulawayo, Matabeleland North and Matabeleland South Micro Small Medium Enterprises advisory council, emphasized the need for education on these policies. “The taxation changes for SMEs and registered businesses are worrisome. There is a significant challenge in literacy; people need to understand how these systems work,” said Ncube.
He plans to liaise with authorities to ensure SMEs are adequately informed about Zimra registration and related policies.
According to a report by Newsday, Trust Mkhwananzi from Pumula South highlighted the impact of taxes on small businesses’ ability to save money. “Our national policy towards SMEs is misaligned. It hinders small businesses from prospering. If they are burdened with various taxes from the outset, they are set up for failure,” Mkhwananzi stated.
Thembi Khumalo, a local vendor, expressed dismay over the increased passport fees, which are crucial for cross-border trade. “The fees are too high, and our businesses are already struggling to make ends meet,” Khumalo lamented.
Micheal Ndiweni, executive director of the Bulawayo Vendors and Traders Association, noted the impact on wholesalers. “Many are stuck with unsold products. This could lead to goods being sold on the black market as businesses try to survive,” he said.
In response to these challenges, the government has reviewed its taxes, a decision welcomed by many in the formal business sector. However, the plight of SMEs and informal traders remains a pressing issue, highlighting the need for more supportive policies to foster small business growth in Zimbabwe.
