Zimbabwe Rolls Out New Rules for Retail Trade.
Zimbabwe's government announced strict measures Thursday to control retail and wholesale trade. The plan aims to bring informal businesses into the tax system.
Finance Minister Mthuli Ncube revealed these changes after meeting with President Mnangagwa at State House in Harare. The rules target tax evasion and market problems.
All street vendors must use point-of-sale machines to record sales. This helps tax collectors track business income. The government wants manufacturers to sell through regular shops, not directly to customers.
"We need to level the playing field and bring everyone into the tax net," Ncube said. A new team will check if shops follow these rules.
The Reserve Bank plans more changes to encourage traders to engage in formal business. These details will be included in its next policy update.
The government wants to stop smuggled goods in protected industries. It will enforce laws that help local businesses. More state contracts will go to Zimbabwe's producers.
Recent budgets already placed a 5 percent tax on small traders buying from big suppliers. The VAT tax now starts at $25,000 in sales, down from $40,000.
Sellers must prove they paid import taxes on items like drinks, dairy goods, and soap. The central bank offers loans to help formal businesses grow.
"These rules make our economy stronger and ready for the future," Ncube said. The changes aim to boost registered companies and create stable jobs.
Zimbabwe's government announced strict measures Thursday to control retail and wholesale trade. The plan aims to bring informal businesses into the tax system.
Finance Minister Mthuli Ncube revealed these changes after meeting with President Mnangagwa at State House in Harare. The rules target tax evasion and market problems.
All street vendors must use point-of-sale machines to record sales. This helps tax collectors track business income. The government wants manufacturers to sell through regular shops, not directly to customers.
"We need to level the playing field and bring everyone into the tax net," Ncube said. A new team will check if shops follow these rules.
The Reserve Bank plans more changes to encourage traders to engage in formal business. These details will be included in its next policy update.
The government wants to stop smuggled goods in protected industries. It will enforce laws that help local businesses. More state contracts will go to Zimbabwe's producers.
Recent budgets already placed a 5 percent tax on small traders buying from big suppliers. The VAT tax now starts at $25,000 in sales, down from $40,000.
Sellers must prove they paid import taxes on items like drinks, dairy goods, and soap. The central bank offers loans to help formal businesses grow.
"These rules make our economy stronger and ready for the future," Ncube said. The changes aim to boost registered companies and create stable jobs.
