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Vendors To Pay For Government Shortcomings Under Mthuli Ncube Tax Push
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ZimEye
Vendors To Pay For Government Shortcomings Under Mthuli Ncube Tax PushShareBusiness Correspondent| Finance, Economic Development and Investment Promotion Minister Mthuli Ncube has proposed linking the renewal of council licences for vendors and small businesses to tax compliance, a move likely to place additional pressure on Zimbabwe’s already struggling informal sector.
“SMEs should no longer be viewed as informal businesses when they are already licensed and regulated by local authorities,” Ncube said.
Under the proposed system, vendors could be required to demonstrate compliance with presumptive tax obligations before their council licences are renewed.
Ncube, however, defended the approach as a way of expanding the country’s narrow tax base and ensuring that businesses operating formally do not carry a disproportionate share of the tax burden.
“We need to broaden the tax base and create a fairer tax environment for compliant businesses,” he said.