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Business simplification: CZR, ZIMRA New Collaboration

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The Confederation of Zimbabwe Retailers (CZR) and the Zimbabwe Revenue Authority (ZIMRA) have launched a joint initiative aimed at simplifying business processes and promoting fair taxation, in a move expected to drive economic growth and improve compliance.

This collaborative effort seeks to streamline tax obligations, reduce administrative burdens, and create a more business-friendly environment.

Speaking during the CZR-ZIMRA Stakeholder Engagement Meeting, CZR President Dr. Denford Mutashu urged ZIMRA to urgently review current tax systems to improve the ease of doing business in the retail and wholesale sectors. He highlighted the importance of improving tax compliance within the informal sector.

“Many informal traders operate outside the tax net and are not subject to VAT or other obligations. This makes their products appear cheaper than those from compliant formal businesses, distorting fair competition,” said Dr. Mutashu.

He proposed that ZIMRA remove the current 5% withholding tax on sales made to non-tax-compliant customers and called for a simplified tiered presumptive tax system to encourage voluntary compliance among informal traders.

Dr. Mutashu also recommended that Taxpayer Identification Numbers (TINs) be made mandatory when applying for shop, trading, and liquor licenses to enhance tracking and enforcement.

During the engagement, he posed a question to ZIMRA Acting Commissioner for Domestic Taxes, Mrs. Mupanduki, regarding the proportion of revenue currently collected from the informal versus formal sectors. He also raised concerns about Route-to-Market (RTM) restrictions.

“Current RTM policies require even small walk-in customers to present VAT registration and tax clearance certificates to purchase goods at wholesale prices. This hinders competitiveness and discourages bulk buying,” he said.

CZR called on ZIMRA to review and relax RTM requirements to enhance market access and support formal wholesalers.

Concerns Over IMTT, Delayed Refunds, and VAT on Overheads
CZR raised further concerns over the Intermediated Money Transfer Tax (IMTT), noting that it disproportionately affects formal businesses that rely on electronic payments, while the largely cash-based informal sector escapes the tax.

They proposed:

  • Reducing the IMTT rate to 1% for US$1 transactions
  • Waiving the IMTT entirely for ZIG transactions

Dr. Mutashu also inquired about when the IMTT would be reviewed or removed, citing its adverse effects on formal retailers.

He further expressed concern over delayed tax refunds, particularly VAT refunds, which are often held up for over a year, impacting liquidity.

“ZIMRA charges interest on late tax payments, yet there is no compensation when the tax authority delays refunds,” he noted.

CZR recommended that ZIMRA:

  • Establish clear turnaround timelines for tax refunds
  • Apply interest on overdue refunds owed to taxpayers

On the issue of VAT on overheads, CZR pointed out that businesses selling VAT-exempt basic commodities cannot reclaim input VAT, increasing operational costs and threatening viability for low-margin retailers.

The organisation called for a review of VAT policies, particularly on reclaiming VAT on overheads for retailers of basic goods.

Dr. Mutashu also highlighted flaws in the PAYE system, citing discrepancies between calculations on ZIMRA’s TARMS platform and company payroll systems. He noted that employees with incorrect or unregistered national IDs could not be processed in TARMS.

“There’s no option to use a generic employee number when submitting VAT on such employees,” he said, recommending interim solutions like generic codes and better system alignment.

Rising property tax was also flagged, with landlords transferring increased tax costs to tenants, adding to the financial strain on retailers.

ZIMRA also raised its own concerns about the treatment of goods at ports of entry, especially regarding inspections.

“Trucks headed to their final destinations are being intercepted and redirected to Bak Storage, despite prior checks at the border,” said a ZIMRA representative.
“This causes delays and results in additional costs for storage, labor, and handling. Some shipments are also being damaged during re-inspection.”

In response to the issues raised, ZIMRA reaffirmed its commitment to improving the ease of doing business and expressed support for the tiered presumptive tax model.

The authority encouraged the increased use of plastic money for tax administration purposes and acknowledged resource constraints in fully integrating the informal sector into the tax system. It was noted that informal sector taxes are now collected during license renewals.

Commissioner Mrs. Mupanduki concluded by reiterating ZIMRA’s stance on transparency and reform, adding that the fight against corruption remains a top priority for the authority.

Current Affairs

Hon. Garwe Rallies Murehwa North: Unity, Agriculture and Presidential Gifts

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15 000 party members to get mealie meal

Itai Mazire

Amid a vibrant atmosphere of community spirit, Mashonaland East Provincial Chairman and Member of Parliament for Murehwa North, Honourable Daniel Garwe, conducted an extensive interactive tour across the constituency this week.

Addressing large gatherings of enthusiastic party supporters, Hon. Garwe delivered a clear message: the time for political tensions has passed, and the season for national productivity has arrived.

The tour, which spanned several wards, focused on reinforcing the developmental goals of Vision 2030 and ensuring food security at household level. Hon. Garwe said the nation must remain insulated from divisive politics and instead consolidate its efforts under the leadership of President Emmerson Mnangagwa.

Rather than focusing on the ballot box, the legislator urged his constituents to turn their attention to the fields. He said that the backbone of the Zimbabwean economy remains agriculture and that the government is committed to supporting every farmer.

“The country is currently not in election mode. We must remain a united force against those trying to hinder the success of Vision 2030. Our primary focus right now must be on the land; we need to focus on agriculture to ensure our nation thrives,” he said.

To support this drive, he announced that the Presidential Inputs Scheme is moving into its next phase. He assured farmers that the critical top-dressing fertilisers required for the current cropping season would be arriving imminently.

“I want to assure every farmer in Murehwa North that the government hears you. Top-dressing fertilisers will be distributed starting next week across the entire constituency under the Presidential Inputs Scheme to ensure we maximise our yields,” said Hon. Garwe.

The tour took an emotional turn in Ward 8 and Ward 16 of the Tongogara District, where Hon. Garwe oversaw the distribution of mealie meal to 1 500 party members.
The exercise will see Hon. Garwe touring 10 party districts, with a total of 15 000 party members set to receive mealie meal.

The gesture was aimed at cushioning vulnerable households and ensuring that the spirit of the New Year reached every kitchen in the district.

Hon. Garwe was quick to point out that the aid was a direct token of appreciation and care from the Head of State.

“No one and no place will be left behind. This mealie meal we are distributing today to these 1 500 families is a New Year gift from President Mnangagwa to the people of this constituency as a sign of his continued love and support. We have toured three districts today,” he said.

Throughout the interactive sessions, Hon. Garwe called for vigilance and loyalty to the national vision. He encouraged the crowds of supporters to ignore external pressures and focus on the tangible development occurring within their own communities.

“We must stand together and protect the progress we have made. Let us not be swayed by those who wish to see us fail, but rather stay committed to the path of development and the leadership of President Mnangagwa,” he said.

The tour concluded with local leaders praising Hon. Garwe’s hands-on approach, noting that the combination of immediate food relief and the upcoming fertiliser distribution would provide much-needed stability for the constituency in the coming months.

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Government Cracks Down on Luxury Vehicles, Foreign Trips by Officials

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The Government of Zimbabwe has announced strict new measures to curb spending by public officials, including an immediate clampdown on the purchase of luxury vehicles and non-essential foreign travel. The funds saved from these cuts will be redirected towards key sectors such as healthcare and education.

The move forms part of wider cost-cutting reforms being implemented under the National Development Strategy 2 (NDS2), aimed at improving financial discipline across government. Authorities say the measures are necessary to reduce pressure on the national budget and prioritise spending that delivers direct benefits to citizens.

Under the new policy framework, the acquisition of high-end vehicles for official use will be tightly controlled, while foreign trips by public servants will be subject to stricter approval processes to ensure they are justified and essential.

According to a government statement, the initiative falls under NDS2’s “Expenditure Rationalisation” pillar, which seeks to eliminate unnecessary and inefficient spending. Officials acknowledged that excessive vehicle procurement and frequent overseas travel have become costly practices that are no longer sustainable.

The government said that over the next five years it will enforce firm controls on non-essential expenditure, with savings channelled towards critical areas such as public health, education, infrastructure development, and social protection programmes.

Authorities emphasised that the reforms reflect a commitment to responsible financial management, ensuring public resources are used efficiently and in ways that support national development priorities and improve the lives of Zimbabweans.

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War on Drugs Intensifies in Murehwa North

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War on Drugs Intensifies in Murehwa North
  • Hon. Daniel Garwe launches whirlwind constituency tour in Murehwa North

  • War declared on drug peddlers and child marriages as sting operations begin

  • 500 vulnerable households receive food aid during minister’s outreach program

Mashonaland East Provincial Chairman and Member of Parliament for Murehwa North, Honorable Daniel Garwe, has kicked off a high-octane whirlwind tour of his constituency, vowing to flush out drug dealers and protect the girl child from the scourge of early marriages.

The tour, which is set to cover 10 wards over the coming days, saw the legislator and Cabinet Minister for Local Government descend on Tongogara District today.

 

The visit was marked by a massive social-welfare intervention, where 500 vulnerable beneficiaries — including the elderly, widows, widowers, child-headed families, people living with disabilities, and village heads — received essential mealie-meal supplies to cushion them against food insecurity.

 

Addressing a capacity crowd, Hon. Garwe delivered a stern warning to those fueling social decay in the province, saying the era of impunity for those exploiting minors is over.

 

“The law will not blink when it comes to the protection of our children. I am warning every individual involved in the archaic and criminal practice of child marriages that your days of freedom are numbered. We will ensure you are brought to book without fear or favor,” said Hon. Garwe.

 

Turning his sights to the drug menace currently rocking Mashonaland East, the Provincial Chairman revealed that a security sting operation is already in motion.

 

He urged those struggling with addiction to seek help, while promising a tough stance against those selling drugs.

 

“To the drug and substance peddlers who are destroying the future of our youth, know this: a massive sting operation is already underway across the province, and we are coming for you because your predatory days are officially over.”

 

On the political front, Hon. Garwe called for “unity of purpose,” urging the community to move past petty divisions and focus on national development under the Second Republic.

 

He said that the developmental trajectory set by President Emmerson Mnangagwa is a non-negotiable path toward prosperity.

 

“We must remain united as a people because development has no political color. Let us rally behind the visionary leadership of the Father of our Nation, President Emmerson Mnangagwa, who is working tirelessly to transform our livelihoods,” said Hon. Garwe.

 

“Let there be no doubt in anyone’s mind that the journey toward Vision 2030 is unstoppable. Here in Murehwa North, we are the foot soldiers who will ensure that no place and no one is left behind in this great industrialization drive,” he added.

 

Hon. Garwe said that the government remains committed to the welfare of beneficiaries, stressing that the distribution of food is a right — not a privilege — for the marginalized.

 

“Our presence here today with these supplies is a clear demonstration that the Second Republic cares for its most vulnerable — the widows, the elderly, and persons with disabilities — and we will continue to provide this safety net as we march toward an upper-middle-income society,” said Hon. Garwe.

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