Business Weekly, will today host a discussion on the impact of taxation on the informal sector. The discussion centres on the question: Does taxing the informal sector impede or support economic growth?
The discussion comes as Government plans to introduce new taxes targeted at micro and small enterprises as well as informal operators.
In his 2021 Budget presentation, Finance and Economic Development Minister Mthuli Ncube proposed to introduce a presumptive tax of an equivalent of US$30 per unit per month on businesses that operate from designated business premises where the landlords are either local authorities or private property owners such as the Gulf Complex and Kwame Mall, among others.
Hairdressers, restaurants, bottle store operators will also pay presumptive tax ranging between $2 500 and $10 000 respectively. Landlords will be responsible for the collection of the above taxes which take effect from 1 January 2021.
Those that fail to collect and remit the tax will be subject to a penalty equivalent to the amount of tax payable and interest.
A snap survey conducted by Business Weekly showed mixed feelings towards the new tax although the majority of 44 percent said the move to introduce the new taxes was the way to go.
Informal players that do not pay any form of tax provide unfair competition to formal businesses and those that pay tax.
SME Association of Zimbabwe Founder & Executive Officer, Farai Mutambanengwe, will be part of the panelists.
Kudzai Mubaiwa, co-founder of iZone Hub, a Zimbabwean hub that serves innovators, creatives and small business owners, will also be part of the panellist and Vision Tax Advisory managing director Trust Chiroora will complete the panel. The discussion, which will be moderated by Business Weekly analyst, Kudzanai Sharara will commence at 3 pm and will be broadcast live on the Business Weekly Facebook Page — https://www.facebook.com/ebusinessweekly/videos