ZIMRA Reviewing Tax System To Better Cater For SMEs

Zimbabwe Revenue Authority (Zimra) announced that they will be reviewing the national tax system in order to better accommodate small to medium businesses.

The Herald reports that SMEs currently make up close to 70% of registered taxpayers whilst contributing 20% to total tax revenue.

Zimra Commissioner General touched on this in a speech delivered on her behalf in Mutare:

Zimra understands the importance of SMEs and how they impact on the economy. We are in the process of reviewing our taxing systems to accommodate the SMEs so that they contribute meaningfully to the economy, but also with limited cost on their part.

Our research is looking at the feasibility of introducing a Turnover Tax, which will be a percentage on the income made by any person engaging in any kind of business.

They can then pay their tax by mobile phones say end of each week or as at their desired frequency within each month.

We would want to see our SMEs growing into large corporates, but with a full understanding of their corporate responsibility.

Faith Mazani

Ms Mazani’s speech also touched on voluntary tax compliance. She noted that if businesses did not have to be hunted down to pay their taxes they would actually reduce business costs that business end up paying due to penalties related to late payments.