Parliament demands Treasury remove the 2% money transfer tax before August 31, 2025. Lawmakers want to save Zimbabwe's struggling formal business sector from collapse. The Parliamentary Portfolio Committee on Industry and Commerce released a stern report about the crisis. Committee leader Clemence Chiduwa warned about businesses closing across the country. At least 20 retail and wholesale companies have shut down since January.
The transfer tax forces businesses to operate outside the law. Companies avoid electronic payments to escape the costly fee. Banks report fewer transactions as customers switch to cash payments. The Bankers Association submitted proposals to reduce the tax burden on businesses. Electronic payment systems face serious threats from the current policy.
Formal businesses must obtain more than 30 licenses to operate one supermarket. Government creates new rules almost daily with an average of one every 1.43 days last year. Small companies choose to stay informal rather than pay expensive compliance costs. The regulatory system creates unfair competition between legal and illegal businesses. Parliament calls the current framework an oppressive maze.
The wholesale and retail sector provides 18% of the country's economic output. Electricity problems force companies to buy expensive generators and solar panels. Smuggled goods undercut legitimate businesses that pay proper taxes and duties. Exchange rate changes and supply problems hurt the sector's stability. More business closures and job losses threaten the economy.
Parliament gives Treasury and the Industry Ministry until August 2025 to fix these problems. Lawmakers want simplified registration processes and fewer regulations. The government must expand online services before December 2025.
The transfer tax forces businesses to operate outside the law. Companies avoid electronic payments to escape the costly fee. Banks report fewer transactions as customers switch to cash payments. The Bankers Association submitted proposals to reduce the tax burden on businesses. Electronic payment systems face serious threats from the current policy.
Formal businesses must obtain more than 30 licenses to operate one supermarket. Government creates new rules almost daily with an average of one every 1.43 days last year. Small companies choose to stay informal rather than pay expensive compliance costs. The regulatory system creates unfair competition between legal and illegal businesses. Parliament calls the current framework an oppressive maze.
The wholesale and retail sector provides 18% of the country's economic output. Electricity problems force companies to buy expensive generators and solar panels. Smuggled goods undercut legitimate businesses that pay proper taxes and duties. Exchange rate changes and supply problems hurt the sector's stability. More business closures and job losses threaten the economy.
Parliament gives Treasury and the Industry Ministry until August 2025 to fix these problems. Lawmakers want simplified registration processes and fewer regulations. The government must expand online services before December 2025.
