‘Educate SMEs on new tax laws’

There is a need for Small and Medium Enterprise (SME) operators to be educated on tax literacy for them to have an appreciation of its application and importance, an official has said.

This came out yesterday during a Bulawayo Informal Sector Working Group engagement on the Finance Act, and Value Added Tax (VAT) registration and tax clearance issues.

Speaking during the meeting, SMEs advisory council member Mr Dumisani Ncube said several SMEs are not literate when it comes to the new laws that have been enacted.

“From the meeting, l realized we have a lot of work to do because people have no literacy on issues to do with VAT and Zimra payment. As much as they have raised genuine concerns which we fully understand and relate to as SMEs, there are also some gaps that we have seen in literacy that have to be fixed. We need awareness campaigns among SMEs,” he said.

Vendors and SMEs who were at the meeting said while they are keen on paying taxes, they are struggling to obtain tax clearances.
Added to that, they highlighted that they don’t have money to make applications.

Mrs Thembi Khumalo, a vendor, said they are appealing to the government to simplify the process of obtaining tax clearance adding that they also need training on how various taxes work.

The meeting came a day when the treasury announced that it has fine-tuned some of the measures introduced through the 2024 National Budget, with basic food items such as bread, milk, cooking oil, and maize meal, exempted from VAT, eliminating the fears of price increases that had gripped consumers.

The measures were announced by Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, following concerns that they could have unintended consequences.

The measures were taken after the Treasury constituted a technical committee to receive input from representative members under the umbrella body of the Confederation of Zimbabwe Industries.

Retailers are now able to buy straight from manufacturers as long as they have obtained a valid tax clearance certificate and are VAT-registered.

Added to that, manufacturers have been allowed to sell to institutions such as hotels only if the clients are registered for VAT.

In terms of the route to market, Prof Ncube said taking into consideration the need to preserve some of the pertinent arrangements for delivery of goods into the market efficiently, the legislation will be fine-tuned in a way that allows retailers to purchase from manufacturers as long as they have obtained a valid Tax Clearance Certificate, and are VAT registered.

“Manufacturers are permitted to sell to institutions such as hotels, schools and other corporations, provided such clients are registered for VAT and possess a valid Tax Clearance Certificate,” he said.

“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 directly to retailers.”

Prof Ncube said his ministry thanked stakeholders for their valued contribution to the process that has resulted in the fine-tuning of the measures introduced through the 2024 National Budget.-chronicle