Zimbabwe to Boost Formal Sector, Enforce Informal Sector Compliance.
Harare, Zimbabwe—Finance Minister Mthuli Ncube said the government will soon announce measures to help the formal sector survive. The government also wants the informal sector to follow laws like paying taxes.
Retailers are worried because the informal sector sells goods for less. This is because it does not always register, pay taxes, or follow labor laws.
In an interview, Ncube said more people are working informally and smuggling goods. This hurts the formal sector.
"The informal sector is squeezing out the formal sector," he said. "We will make the informal sector comply with requirements like licensing, taxes, and selling in proper areas."
The government will also help formal retailers "ride the storm," Ncube said. It will announce ways to support them soon.
At the same time, it will make sure the informal sector follows tax and registration rules.
The revenue authority has seized $2.4 million in goods from smugglers. It took vehicles, food, and used clothes.
The Chamber of Commerce also wants to fix economic pressures. Its president, Tapiwa Karoro, said informal vendors hurt formal businesses.
"They have fewer costs and rules to follow," he said. "This puts formal shops at a disadvantage."
The Chamber wants to:
The government and businesses want to work together on solutions. They plan to keep talking about the challenges.
Harare, Zimbabwe—Finance Minister Mthuli Ncube said the government will soon announce measures to help the formal sector survive. The government also wants the informal sector to follow laws like paying taxes.
Retailers are worried because the informal sector sells goods for less. This is because it does not always register, pay taxes, or follow labor laws.
In an interview, Ncube said more people are working informally and smuggling goods. This hurts the formal sector.
"The informal sector is squeezing out the formal sector," he said. "We will make the informal sector comply with requirements like licensing, taxes, and selling in proper areas."
The government will also help formal retailers "ride the storm," Ncube said. It will announce ways to support them soon.
At the same time, it will make sure the informal sector follows tax and registration rules.
The revenue authority has seized $2.4 million in goods from smugglers. It took vehicles, food, and used clothes.
The Chamber of Commerce also wants to fix economic pressures. Its president, Tapiwa Karoro, said informal vendors hurt formal businesses.
"They have fewer costs and rules to follow," he said. "This puts formal shops at a disadvantage."
The Chamber wants to:
- Make the goods market free
- Make exchange rates more flexible
- Reduce taxes and licenses for formal businesses
- Encourage informal businesses to register
- Help businesses get affordable financing
The government and businesses want to work together on solutions. They plan to keep talking about the challenges.
