Address mushrooming tuck-shops problem, Government urged
Government has been urged to address the problem of mushrooming of tuck-shops which are selling their products in foreign currency only.
This comes following the disruption of the supply chain whereby cash-rich retailers are now buying directly from producers thereby creating artificial shortages of goods especially at big retail outlets.
Confederation of Zimbabwe Retailers president Mr Denford Mutashu said yesterday that there is a need to restore sanity in the market place.
Mr Mutashu said Government should urgently address the challenge of mushrooming tuckshops that are selling products in forex only after getting their products directly from producers.
“There is a need for a solution-based approach in addressing the issue of small to medium enterprise businesses that are running these tuckshops. These small retailers are getting supplies direct from the producers thereby disrupting the supply chain,” said Mr Mutashu.
He said there is a need for Government to find a way of making these small businesses pay tax just like what big retailers are doing.
“These small retail outlets have joined the retail sector and as such by asking Government to find a way of making them pay tax, we are assisting them to regularise their operations,” said Mr Mutashu.
On Monday, Minister of Industry and Commerce Dr Sithembiso Nyoni toured Downtown tuckshops in Harare where she said it is essential to convene an inter-ministerial meeting, which will provide an opportunity to delve deeper into the issue of disruption of supply chain causing artificial shortages.
Dr Nyoni has over the past few weeks been engaging Business Member Organisations (BMOs) representing manufacturers as well as those representing both formal and informal retailers.
During the meetings, manufacturers and retailers raised several critical issues that require immediate attention.
Minister Nyoni said one of the major concerns was the emergence of cash-rich informal wholesale and retail shops, particularly in the downtown area of Harare, which has led to an artificial shortage of basic commodities in the formal market.
“These informal shops are buying directly from manufacturers in USD thereby impacting the availability of goods for formal retailers. Another issue raised is the reluctance of manufacturers to supply basic goods to the formal sector as formal retailers often take an extended period (up to 60 days) to make payments. This delay in payment is unsustainable and has led manufacturers to favour selling to informal traders who exclusively trade in USD,” she said.
Dr Nyoni said it has come to the ministry’s attention that a significant number of informal traders are not tax compliant and do not possess fiscalised devices.
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